Naveen seeks special Assembly session over MMDR Bill, flags revenue risk

Naveen Patnaik has sought an all-party meeting and a special Assembly session, warning that the MMDR amendment could weaken Odisha's fiscal autonomy and mineral revenues

Biju Janata Dal (BJD) president and former Odisha Chief Minister Naveen Patnaik on Friday urged Chief Minister Mohan Charan Majhi to take immediate steps to protect the state's fiscal autonomy and rights over its mineral resources.

 

Terming the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, a serious threat to Odisha's financial interests and constitutional rights over its natural resources, Patnaik said its provisions could disproportionately affect mineral-rich states such as Odisha and result in significant revenue losses.

 

The former chief minister pointed out that BJD members had strongly opposed the Bill in the Rajya Sabha, raising vital objections regarding severe infringement on the state's financial rights.

   

In a letter to Majhi, Patnaik demanded that an all-party meeting be convened immediately to build a unified political consensus on protecting Odisha's federal rights and mineral revenues.

 

He also urged Majhi to summon a special session of the Odisha Legislative Assembly and secure passage of a unanimous resolution opposing the amendment and protesting what he described as the Union government's encroachment on state powers.

 

The BJD president specifically flagged the amendment to Section 2, which expands the scope of Union control to include “mineral-bearing lands” along with the regulation of mines. Patnaik argued that this raises concerns over the state's jurisdiction over its land and natural resources.

 

Another major concern raised in the letter is the proposed Section 9D, which, according to Patnaik, explicitly restricts state governments from imposing any tax, cess or similar levy on mineral rights or mineral-bearing lands, whether based on quantity, value or royalty, except under conditions imposed by the central government.

 

He also objected to the amendment to Section 13, which he said gives the Centre exclusive authority to frame rules restricting the states' power to levy taxes on minerals.

 

Patnaik stressed that mineral revenues are crucial to Odisha's development, contributing to expenditure on healthcare, education, social welfare and infrastructure. He argued that depriving the state of its ability to impose taxes and cesses on mineral-bearing lands would weaken its revenue base and undermine the principle of fiscal federalism.

 

“Odisha's natural wealth belongs to her people,” Patnaik said in his letter, warning that the state could ultimately be left with the environmental and social costs associated with mining while a larger share of the economic benefits is taken away.

 

“Fiscal autonomy is a constitutional principle built into our federal system. This Bill directly undermines a critical pillar of the Centre-State relationship, taking India's federal structure in a distinctly retrogressive direction and strikes at the foundation of cooperative federalism,” he pointed out.

 

This issue, Patnaik said, transcends political affiliations, as it directly impacts the financial stability and future growth of Odisha. He warned that if the Centre takes away the state's authority over mineral-bearing lands and its ability to levy cesses, Odisha could be left shouldering the pollution, displacement and other burdens associated with mining while losing a substantial part of the benefits accruing from its mineral wealth.