THEBUSINESSBYTES BUREAU

BHUBANESWAR, SEPTEMBER 24, 2026

The Odisha government on Thursday told the Assembly that it has not yet made any assessment of the financial gain or loss to the mineral-rich state following the implementation of the amended Mines and Minerals (Development and Regulation) Act, which curbs the powers of states to impose taxes, cess and other levies on mineral rights and mineral-bearing lands.

Replying to questions from several MLAs, Steel and Mines Minister Bibhuti Bhusan Jena said no specific estimate of the financial impact of the amended provisions had been prepared so far.

 “No specific estimate of financial gain or loss has been made at this stage regarding the amended provisions of the MMDR Act. The state government will assess the financial impact after the central government formulates the necessary rules and regulations,” Jena said.

He said the government would take appropriate measures in accordance with existing laws and statutory provisions to safeguard Odisha’s mineral resources and revenue interests.

BJP MLA Prakash Soren had sought to know whether Odisha stood to gain or lose from the amended law, the quantum of such gain or loss and the steps being taken by the government to protect the state’s interests.

BJD MLA Kalikesh Narayan Singh Deo also sought to know whether the government had assessed the impact of the MMDR Amendment Act, 2026, particularly Section 9D, on Odisha’s revenue.

Section 9D bars state governments from imposing independent taxes or cess on mineral rights or mineral-bearing lands without approval from the Centre.

 “The state government has not conducted a quantified assessment of the impact of Section 9D on the state’s revenue from taxes or levies on mineral rights and mineral-bearing land,” Jena said.

Leader of Opposition and BJD president Naveen Patnaik has claimed that Odisha could lose more than Rs 1 lakh crore in tax arrears and around Rs 12,000 crore in annual revenue because of the amended law.

Responding to the claim, Jena said no final assessment had been made by the state government regarding the precise amount of arrears, if any, that may become unrecoverable, or the estimated annual revenue impact attributable specifically to Section 9D.

On the opposition’s reference to the Odisha Advocate General’s stand in the Supreme Court supporting the levy of taxes on mineral-bearing lands, Jena said the figures or positions published in Odisha Review or placed before the apex court were not being treated as a departmental assessment for quantifying the present financial impact of Section 9D.

 “Any such comparison will be made only after the legal and operational implications of the amended provision are fully ascertained,” he said.

Odisha earned Rs 51,127 crore from the mining sector in 2025-26, underscoring the importance of mineral-related revenue to the state’s finances.

The issue was also raised by BJD MLAs Ganeswar Behera, Byomakesh Ray, Sarada Prasad Nayak and Pratap Keshari Deb, Congress MLA Taraprasad Bahinipati and suspended BJD MLA Arvind Mohapatra.