A day after Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, Biju Janata Dal (BJD) president and former Odisha chief minister Naveen Patnaik voiced concerns over the draft law, calling it an “infringement on the state’s financial rights”.Patnaik, whose party also opposed the Bill in the Rajya Sabha, said the legislative measure poses a “serious threat to Odisha’s fiscal autonomy and constitutional rights” over its natural resources.“The provisions introduced in this Bill will disproportionately impact mineral-rich states like Odisha, leading to massive revenue losses and stifling our state’s developmental agenda,” Patnaik said in a letter to Odisha CM Mohan Charan Majhi.Considering the “long-term adverse impact” of the legislation on Odisha’s economy, the BJD president also demanded an all-party meeting to build a unified consensus on safeguarding Odisha’s federal rights and mineral revenues. Patnaik, who is currently the Leader of the Opposition in the state Assembly, called for a special session of the Assembly to pass a unanimous resolution opposing the new MMDR Act and to protest the Union government’s “usurpation of state powers”.Also Read | How a new mining Bill threatens to reignite Centre vs state tensionsThe BJD chief opposed amendments in the new Bill, such as the expansion of Union control under Section 2 to include “mineral-bearing lands” alongside regulation of mines, which he called an encroachment on the state’s land and fiscal jurisdiction. He also opposed the provision that explicitly prohibits state governments from levying any tax, cess, or similar levy on mineral rights or mineral-bearing lands, and the amendment that grants the Central government sole authority to frame rules restricting states’ power to levy taxes on minerals.Patnaik said Odisha’s natural wealth belongs to her people, and the revenue generated from mining operations is crucial for financing healthcare, education, social welfare schemes, and infrastructure development across the state.“By stripping the state of its power to impose taxes and cesses on its own mineral-bearing lands, the Union Government has dealt a heavy blow to federalism and state revenue autonomy,” said the former chief minister.Story continues below this adStating that fiscal autonomy is a constitutional principle built into the federal system, Patnaik said the Bill directly undermines a critical pillar of the Centre-State relationship, takes India’s federal structure in a distinctly retrogressive direction, and strikes at the foundation of cooperative federalism.Also Read | Why India is struggling to acquire critical mineral assets abroadPatnaik said the issue directly impacts the financial stability and future growth of Odisha. “If the Central Government takes away the State’s authority over mineral-bearing lands and its right to levy cesses, only pollution, displacement and burden of mining will remain with Odisha, while the benefits are taken away from its people,” he added.The passage of the Bill assumes significance as the Supreme Court, in July 2024, upheld the power of states to levy taxes on mineral rights and mineral-bearing land. The court also allowed states to collect tax arrears from April 1, 2005 onwards, but without any interest or penalty. Odisha expects massive gains following the Supreme Court order.The state now levies royalty on lessees for extracting minerals. Considering Odisha’s significant mineral reserves, the state earns around Rs 50,000 crore annually from the mining sector.Story continues below this adThe new law comes over two decades after the BJD-BJP coalition government enacted the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act in 2004 to levy taxes on mines and mineral-bearing land. The rules to implement the legislation were framed a year later.However, the law was struck down by the Orissa High Court in December 2005. The matter is now pending in the Supreme Court.Sujit Bisoyi is a Special Correspondent with the Indian Express and covers Odisha. His interests are in politics, policy and people’s stories. He tweets at @bisoyisujit87 ... Read More