BJD moves President against Mines Act amendment, cites Odisha’s revenue loss

BHUBANESWAR: The Biju Janata Dal (BJD) on Wednesday staged a protest here and submitted a memorandum to President Droupadi Murmu through Governor Hari Babu Kambhampati, seeking constitutional intervention against the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2026.

Party leaders marched to Lok Bhavan, the Governor’s office, to apprise him of the consequences of the amendment for Odisha, which is one of the most mineral-rich states in India. The memorandum said the Act would substantially curtail the State’s rights and financial interests in mines and mineral-bearing lands, with far-reaching consequences for its people.

“Odisha is one of the most mineral-rich states in the country and has contributed immensely to India’s industrial and economic development through its reserves of iron ore, coal, bauxite, chromite, and other minerals. The mineral resources located within the territory of Odisha constitute an important component of the State’s natural wealth and have historically been a major source of revenue for the State government,” the BJD leaders said.

“Any legislative measure that substantially curtails the rights and financial interests of the State in relation to mines and mineral-bearing lands therefore has far-reaching consequences for Odisha and its people, and deserves careful constitutional and legal examination,” they added.

The party’s concerns stem from a July 24, 2024 Supreme Court judgment, which recognised the power of State governments to impose taxes and levies on mines and mineral-bearing lands, and also dealt with recovery of such dues from April 1, 2005. The BJD said Odisha was entitled to receive substantial arrears, estimated at more than ₹1 lakh crore, along with approximately ₹12,000 crore in additional annual revenue.

“These amounts are of immense significance to Odisha as they could substantially strengthen the State’s financial capacity to undertake development and welfare programmes, and to invest in infrastructure, education, healthcare, irrigation, rural development and other priorities, which, in our considered view, raise serious concerns regarding the constitutional rights, fiscal interests, and legitimate interests of the State of Odisha in its mineral resources,” the memorandum stated.

The BJD expressed deep concern over the amendment’s expansion of Union control. The party pointed to provisions that enlarge Section 2 to include “mineral-bearing lands”, restrict State governments under Section 9D from levying taxes, cesses or similar charges on mineral rights or mineral-bearing lands, and empower the Central government under Section 13 to frame rules limiting such State taxation.

“The amendment has significant implications for Odisha’s fiscal autonomy, and the constitutional balance between the Union and the States,” the memorandum said.

The BJD urged Governor Kambhampati to exercise his powers under Article 244(1) of the Constitution, which under the Fifth Schedule provides a special framework for the administration of Scheduled Areas and Scheduled Tribes. The party did not specify what action it expects the Governor to take, but stressed the need for constitutional and legal examination of the measure.

The protest came amid growing political debate over the division of mineral resources between the Centre and mineral-rich states. Several other states have also raised concerns about the amendment’s impact on their revenues. The MMDR Amendment Act, 2026, was passed by Parliament earlier this year, with the government arguing that it brings clarity to mineral governance and reduces taxation overlaps. However, states like Odisha contend that it undermines their constitutional powers and could severely strain their finances.

The BJD’s demonstration on Wednesday was its most visible response so far to the law. The party, which has historically championed Odisha’s control over its mineral wealth, said it will continue to press its case at all levels. The Governor has not yet issued a statement on the memorandum.