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Odisha's Financial Autonomy Threatened by Central Mining Regulation Changes

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News Analysis IndiaReporter
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August 14, 2026
06:22 PM
Odisha's Financial Autonomy Threatened by Central Mining Regulation Changes

Naveen Patnaik, president of the Biju Janata Dal, has raised an alarm over the Mines and Minerals (Development and Regulation) Amendment Bill currently under consideration. In a letter to Chief Minister Mohan Chandra Majhi, he urged the convening of a special session of the Odisha Assembly to reject the amendment.

Patnaik described the proposed changes as a serious danger to the state's fiscal independence and its constitutional entitlement to natural resources. He reminded that BJD parliamentarians had strongly opposed the bill in the Rajya Sabha, labeling it a violation of Odisha's financial rights.

The amendment seeks to bring "mineral‑laden land" under central regulation, extending beyond the existing mine‑control provisions of Section 2. Patnaik warned that Section 9D would restrict states from levying any tax, cess or fee on such land, except those defined by the Union.

He also pointed out that Section 13 grants the centre exclusive authority to formulate rules that limit state powers to tax mineral resources. Patnaik stressed that revenue from mining is vital for health, education, welfare programmes and infrastructure development throughout Odisha.

Patnaik appealed for a consensus‑building meeting of all parties to protect Odisha's federal rights and mining revenue, and called for a special legislative session to pass a unanimous resolution opposing the central amendment.

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