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Odishas Leader of Opposition, Naveen Patnaik, on Sunday urged the state's Chief Minister Mohan Charan Majhi to convene a special session of the state Assembly and pass a unanimous resolution seeking repeal of the Mines and Minerals (Development and Regulation) Amendment Act, 2026, arguing that the amendment affects Odishas constitutional rights over taxation of mineral wealth.
In a letter to Majhi dated September 20, Patnaik said Odisha had fought legal battles to protect the states power to impose taxes on minerals and mineral-bearing lands. He referred to a recent case that was dealt with by a nine-judge Constitution Bench of the Supreme Court, which, according to him, upheld Odishas position against claims made by mining companies. Patnaik said the Supreme Court judgment had opened the way for Odisha to recover crores of rupees in past dues and secure a minimum recurring annual revenue of nearly Rs 12,000 crore. He said the potential revenue had significant implications for the states development and its ability to create opportunities for its youth. However, Patnaik said the subsequent MMDR Amendment passed by Parliament had, in his view, taken away Odishas constitutional right to levy taxes on its mineral wealth. He also alleged in the letter that 20 BJP MPs supported the amendment. These are claims made by Patnaik in his communication to the Chief Minister. He called on the state government to seek repeal of the amendment and reaffirm the constitutional rights that he said were upheld by the Supreme Court. Patnaik also said the Biju Janata Dal would support the government in pursuing such a resolution. The Mines and Minerals (Development and Regulation) Act, 1957, or MMDR Act, is the central law governing the development and regulation of mines and minerals in India. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by the Lok Sabha on August 12 and the Rajya Sabha on August 13, 2026, before receiving presidential assent on August 17. The government had assured that the amendment is intended to provide greater certainty and predictability in the fiscal regime for the mineral sector. The government has also maintained that the amendment does not take away states rights over land and minerals or taxes already collected by states, while stating that around 90 per cent of mining-sector taxes and statutory payments accrue to states. (ANI)
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