Bhubaneswar: The Odisha government Thursday informed the assembly that it has not yet made any estimate of financial gain or loss to be incurred by the mineral-rich state following the implementation of the amended MMDR Act.
The recent amendments made by the Centre to the Mines and Minerals (Development and Regulation) Act have curbed the power of state governments to impose taxes, cess and other levies on mineral rights and mineral-bearing lands.
“No specific estimate of financial gain or loss has been made at this stage regarding the amended provisions of the MMDR Act. The state government will assess the financial impact after the central government formulates the necessary rules and regulations,” Steel and Mines Minister Bibhuti Bhusan Jena said.
Replying to questions made by several MLAs, including the ruling BJP’s Prakash Soren, Jena said that appropriate measures would be taken in accordance with existing laws and statutory provisions to safeguard the state’s mineral resources and revenue interests.
In his question, Soren sought to know whether Odisha would gain or lose with the enactment of the amended law.
“If a profit is being made, what kind of profit is it and what is the amount? If a loss is being incurred, what is the extent of that loss? What steps is the government taking in the interest of the state?” Soren said.
Another question was raised by BJD member Kalikesh Narayan Singh Deo on whether the state government has made any assessment on the impact of the MMDR Amendment Act, 2026, especially Section 9D of it, on Odisha’s revenue from taxes or levies on mineral rights and mineral-bearing land.
Section 9D of the amendment act stops state governments from placing independent taxes or cesses on mineral rights or mineral-bearing lands without central approval.
“The state government has not conducted a quantified assessment of the impact of Section 9D of the MMDR Amendment Act, 2026 on the state’s revenue from taxes or levies on mineral rights and mineral-bearing land,” the minister said.
Leader of Opposition and BJD president Naveen Patnaik has claimed that the state stands to lose over Rs 1 lakh crore in tax arrears and around Rs 12,000 crore in annual revenue following the passage of the amended act.
“No final assessment has been made by the state government at this stage regarding the precise amount of arrears, if any, that may become unrecoverable, or the estimated annual revenue impact attributable specifically to Section 9D,” Jena said.
Opposition parties also stated that Odisha’s advocate general, while arguing for the state in the Supreme Court, had justified imposing a levy on mineral-bearing lands by the state government.
To this, the minister said, “The figures/positions referred to as having been published in Odisha Review (state’s mouthpiece) or placed before the Supreme Court are not being treated as departmental assessment for the purpose of quantifying the present financial impact of Section 9D.”
Any such comparison would be made only after the legal and operational implications of the amended provision are fully ascertained, he said.
In the 2025-26 fiscal, Odisha earned Rs 51,127 crore from the mining sector.
The other MLAs who raised questions on the MMDR Amendment Act included BJD’s Ganeswar Behera, Byomakesh Ray, Sarada Prasad Nayak and Pratap Keshari Deb, Congress’ Taraprasad Bahinipati, and suspended BJD MLA Arvind Mohapatra.
