Leader of Opposition and Biju Janata Dal (BJD) president Naveen Patnaik on Friday, 14 August wrote to Odisha Chief Minister Mohan Charan Majhi, urging him to convene a special session of the Odisha Legislative Assembly to pass a resolution opposing the Mines and Minerals (Development and Regulation) Amendment Bill. Patnaik argued the legislation poses a direct threat to Odisha's fiscal autonomy and constitutional rights over its natural resources.

What Patnaik's Letter Said

In his letter to Chief Minister Majhi, the BJD chief contended that the amendment would disproportionately impact mineral-rich states like Odisha, resulting in what he described as massive revenue losses and a stifling of the state's developmental agenda. He said BJD MPs had already strongly opposed the Bill in the Rajya Sabha, citing what they called a severe infringement on state financial rights.

Patnaik specifically flagged the amendment's expansion of Union Government control under Section 2 to include 'mineral-bearing lands' — a move he said encroaches on the state's land and fiscal jurisdiction beyond the earlier scope of mine regulation alone.

Key Provisions Under Scrutiny

The BJD president pointed to Section 9D of the amended law, which explicitly prohibits states from imposing any tax, cess, or similar levy on mineral rights or mineral-bearing lands — whether calculated on quantity, value, or royalty — except under conditions prescribed by the Central Government. He further argued that the amendment to Section 13 gives the Centre exclusive authority to frame rules that restrict state governments' power to levy taxes on minerals.

'Odisha's natural wealth belongs to her people, and the revenue generated from mining operations is crucial for financing healthcare, education, social welfare schemes and infrastructure development across the state,' Patnaik asserted. He added that stripping the state of its power to impose taxes and cesses on mineral-bearing lands amounts to a 'heavy blow to federalism and state revenue autonomy.'

Patnaik's Demands

Beyond the special Assembly session, Patnaik urged Chief Minister Majhi to convene an immediate All-Party Meeting to build unified consensus on protecting Odisha's federal rights and mineral revenues. He stressed that the issue cuts across political lines, directly affecting the state's financial stability and long-term growth prospects.

'If the Central Government takes away the state's authority over mineral-bearing lands and its right to levy cesses, only pollution, displacement and burden of mining will remain with Odisha, while the benefits are taken away from its people,' Patnaik warned.

Broader Federal Implications

This comes amid a wider debate over Centre-state resource sharing, with several mineral-rich states having raised concerns about the fiscal impact of the MMDR amendments. Odisha is among India's largest producers of iron ore, coal, and bauxite — making its royalty and cess revenues a critical pillar of state finances. A formal Assembly resolution, if passed, would add institutional weight to the opposition and could prompt other mineral-dependent states to follow suit.