MMDR Amendment: BJD warns of ₹12,000 crore annual loss for Odisha
Synopsis
Key Takeaways
The Biju Janata Dal (BJD) on 14 August launched a sharp offensive against the Bharatiya Janata Party (BJP)-led state and central governments over the amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act, warning that the revised legislation will siphon Odisha's mining revenues to New Delhi and cost the state exchequer an estimated ₹12,000 crore annually. The party announced it will launch state-wide street agitations to resist what it called an assault on Odisha's federal rights.
Key Allegations at the Press Conference
Addressing a joint press conference at Sankha Bhawan in Bhubaneswar, former Minister Priti Ranjan Ghadai and Senior General Secretary Bhrugu Baxipatra condemned the amendment, accusing the 'double-engine' government of sacrificing the state's economic interests. Ghadai alleged that since the BJP assumed power in Odisha, illegal smuggling of mineral resources has surged across the state. He also criticised the central government for diverting royalty revenues — generated from local mineral wealth — away from the District Mineral Foundation (DMF), which is meant to fund public welfare in mining-affected regions.
Ghadai specifically questioned the conduct of Odisha's 20 BJP Members of Parliament, accusing them of remaining silent and backing the Bill in Parliament without debate. 'The people of Odisha deserve an answer as to how the state BJP Government and the MPs accepted this Bill, which strikes at the federal structure. It is unacceptable that Odisha's mining revenue will not be invested in the development of the state but will instead be used for the development of other states,' he said.
Supreme Court Ruling Cited
Baxipatra invoked a Supreme Court ruling that affirmed the state government's exclusive right to collect mining revenue for the development of mineral-rich Odisha, arguing that the Centre is now disregarding that judgment. He further pointed out that although the Supreme Court directed in July 2024 that ₹1.5 lakh crore in outstanding dues be recovered from mining owners, the state BJP government has made no effort to act on that directive.
'On the other hand, through this law, the annual revenue of ₹12,000 crore that the state receives will be handed over to the Central Government. According to the new Bill, the State Government will no longer be able to recover outstanding dues from any mining owner. The people of Odisha will never forgive the BJP Government for the immense loss it is causing to the state,' Baxipatra said.
BJD's Opposition in Parliament and Next Steps
The BJD leadership reiterated that the party had strongly opposed the MMDR Act Amendment Bill in the Rajya Sabha. The party announced it will shortly mobilise cadres for state-wide agitations to safeguard Odisha's mineral rights and revenues. The Opposition Indian National Congress (Congress) also criticised the government over the issue, echoing concerns about the silence of Odisha's MPs during the parliamentary proceedings.
What the Amendment Means for Odisha
Odisha is among India's most mineral-rich states, with significant reserves of iron ore, coal, bauxite, and chromite. Critics argue that centralising mining revenue collection undermines the state's capacity to fund local infrastructure, tribal welfare, and environmental remediation through the DMF framework. This is not the first time the MMDR Act has been contested on federal grounds — earlier amendments in 2015 and 2021 also drew resistance from mineral-rich states over revenue-sharing arrangements. The latest amendment, according to the BJD, escalates that tension to a new level by reportedly restricting states from recovering dues independently.