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BJD claims BJP MPs' support to mining law may cost Odisha ₹1 lakh crore

Published on: 02 Sep 2026, 05:14 AM
BJD claims BJP MPs' support to mining law may cost Odisha ₹1 lakh crore

The Biju Janata Dal (BJD) on Tuesday accused Bharatiya Janata Party (BJP) parliamentarians from Odisha of backing the Mines and Minerals (Development and Regulation) Amendment Act, 2026, despite knowing that the law could deny the state nearly ₹1 lakh crore in mineral tax arrears.

At a press conference, BJD Rajya Sabha MP Santrupt Misra said the Odisha government had previously told the Supreme Court that the amount was a legitimate entitlement of the state. He cited an affidavit filed by state Advocate General Pitambar Acharya, which contended that Odisha would suffer substantial financial loss if the money was not paid.

The amendment introduces Section 9D in the MMDR Act, which states that any tax, cess or other levy on mineral rights or mineral-bearing land that had not been deposited with or recovered by a state government before the Act came into force would be deemed invalid. It also says that amounts already collected by states would not be refunded.

Mr. Misra argued that the Centre had permanently taken away states' rights over mines and mineral-bearing land. He referred to a Supreme Court judgment delivered by a nine-judge Bench on July 25, 2026, which upheld the power of states to impose taxes and levies on such land.

The BJD leader also cited the Odisha Review, an official magazine of the Odisha government published in November 2025. According to that publication, the state was expected to receive more than ₹1 lakh crore in pending dues from 2005, to be paid in instalments over 12 years starting April 2026. It also said Odisha could get about ₹12,000 crore annually as current tax under the Odisha Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004.

Mr. Misra alleged that the amendment runs contrary to Odisha's interests, and the support given to it by BJP MPs proves that the party is not working to protect the state. He added, “The BJP is not working to protect the interests of Odisha,” while emphasizing that the party had voted for the legislation despite the state's own legal position.

The BJD has no representation in the Lok Sabha. In the 2024 general election, the BJP won 20 of Odisha's 21 seats, with the remaining seat going to the Congress. The BJD, led by former Chief Minister Naveen Patnaik, has been critical of the amendment, with Patnaik earlier objecting to the insertion of Section 9D.

The allegations are part of a larger political dispute between the regional party and the ruling BJP over mineral rights and revenue sharing. No response from the BJP MPs named in the allegations was immediately detailed in the press conference report.

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