The opposition Biju Janata Dal (BJD) in Odisha on Friday, 21 August challenged the ruling Bharatiya Janata Party (BJP) to an open debate over the recently passed Mines and Minerals (Development and Regulation) Amendment Bill, alleging the legislation strips mineral-rich states of constitutionally guaranteed revenue rights. The party specifically targeted former Union Minister Dharmendra Pradhan, rejecting his claim that Odisha would suffer no financial loss.

Key Allegations at the Press Conference

At a press conference held at Sankha Bhawan in Bhubaneswar, former Minister and MLA Dr Arun Sahoo and Senior BJD General Secretary Bhrugu Baxipatra alleged that the Bill was passed in the Lok Sabha without any discussion, and would cause extensive losses not only to Odisha but to all mineral-rich states across the country.

Sahoo pointed to a landmark July 2024 ruling by a nine-judge Constitution Bench of the Supreme Court, which upheld states' rights over mines and mineral-bearing lands, including the power to impose levies and taxes. Crucially, the bench had also ruled that states could recover outstanding taxes from mining companies with effect from 1 April 2005.

The Financial Stakes for Odisha

'Accordingly, it was estimated that Odisha alone could recover around ₹1.5 lakh crore as arrears. In addition, it was estimated that the state could earn additional ₹12,000 crore annually in mining revenue. However, through the MMDR Amendment Bill, the Central Government has taken away Odisha's legitimate entitlement,' alleged Sahoo.

He further criticised the 20 Lok Sabha and five Rajya Sabha MPs from the BJP representing Odisha for supporting the legislation, arguing they had acted against the state's fiscal interests.

BJD Hits Back at Pradhan's Defence

Rejecting Pradhan's assertion that former Chief Minister Naveen Patnaik was misleading the public over the Bill's financial impact, Sahoo highlighted how Patnaik had transformed Odisha from a revenue-stressed state in 2000 into a fiscal success story by 2024, with mining sector revenues playing a central role in that turnaround.

'Revenue generated from the mining sector played an important role in the development of the State. Unfortunately, after bringing in the MMDR Amendment Bill, the BJP Government has sacrificed the interests of Odisha and handed over the power to collect taxes from the mining sector to the Central Government,' Sahoo alleged.

BJD Vows to Intensify Opposition

BJD leader Baxipatra said Pradhan's claim that Odisha would not suffer any loss was 'far removed from reality.' He stated that the BJD would strongly oppose what he called an 'arbitrary law' and would intensify its struggle in the coming days in the interest of Odisha and its people. This comes amid broader concerns from multiple mineral-rich states over the Centre's increasing role in regulating sub-soil resources — a domain states have long considered their own. The BJP is yet to formally respond to the BJD's open debate challenge.