Mineral Tax Dispute
Odisha Opposition Leader Patnaik Demands Special Session to Repeal Mineral Tax Amendment
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Key Points
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The MMDR Amendment Bill, 2026, was passed by the Lok Sabha on August 12 and the Rajya Sabha on August 13, and subsequently received presidential assent later that month.
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The amended law places restrictions on state governments imposing taxes, cesses or other levies on mineral rights and mineral-bearing lands, subject to conditions prescribed by the Centre.
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Patnaik alleged that 20 BJP MPs supported the amendment, presenting the claim as part of his criticism of Parliament’s action.
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Patnaik said discussions had reportedly taken place within the Odisha government on how funds arising from the Supreme Court ruling could be used for the benefit of the state’s people.
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The latest appeal followed an earlier letter Patnaik sent to Chief Minister Majhi on August 14 regarding the amendment.
Odisha's opposition leader Naveen Patnaik is pushing Chief Minister Mohan Charan Majhi to call a special Assembly session and pass a unanimous resolution to repeal the 2026 Mines and Minerals (Development and Regulation) Act amendment ETV Bharat. The amendment, passed by Parliament in August, restricts states from taxing mineral resources and mineral-bearing lands Asian Net News. Patnaik says the change could cost Odisha nearly Rs 12,000 crore annually in lost revenue, based on a recent nine-judge Supreme Court ruling that upheld the state's taxing power ETV Bharat.
The BJD president argues the amendment violates Odisha's constitutional rights and pledged his party's support to the government in fighting for the state's interests Daily Hunt. He said discussions have started within the government on using the recovered funds for public benefit. This is Patnaik's second push on the issue, following an earlier letter to Majhi on August 14.
Parliament Passed Amendment Limiting State Tax Powers
The MMDR Amendment Bill sailed through both houses of Parliament in August Asian Net News. The Lok Sabha approved it on August 12, followed by the Rajya Sabha on August 13. The bill received presidential assent shortly after ETV Bharat. The new law prevents state governments from imposing taxes, cesses, or other levies on mineral rights and mineral-bearing lands without central government approval.
Patnaik claimed that 20 BJP MPs voted for the amendment Daily Hunt. He framed this support as evidence of the ruling coalition's efforts to weaken state powers over mineral resources. Opposition protests erupted in the Odisha Assembly during the third day of the year, with Congress and BJD legislators demanding the amendment's withdrawal Daily Hunt.
Supreme Court Ruling Could Unlock Rs 12,000 Crore Revenue
A recent nine-judge Supreme Court decision backed Odisha's right to tax mineral resources and mineral-bearing lands ETV Bharat. Patnaik cited this ruling as proof that the state should retain these powers. According to his calculations, Odisha could recover past dues and generate nearly Rs 12,000 crore annually in new revenue from mineral taxation Asian Net News.
The opposition leader said government officials have already begun discussing how to use these recovered funds for the state's people Daily Hunt. He framed the special session resolution as the first step to defending Odisha's constitutional authority. Patnaik called on the Centre to reverse the amendment and restore state-level control over mineral taxation.
Patnaik Offers Cross-Party Support for State's Cause
Rather than making this a partisan fight, Patnaik said the BJD would back the government if it defends Odisha's rights ETV Bharat. He framed the amendment repeal as a state interest that transcends party lines. This offer of cooperation underscores how deeply the mining issue cuts across Odisha's political divide.
Patnaik's push follows his August 14 letter to Chief Minister Majhi on the same topic Daily Hunt. The opposition leader's renewed appeal signals he sees the issue as urgent and believes a special Assembly session could build momentum for federal action. The resolution would send a clear message from Odisha that the state wants its mineral taxation powers restored.
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