Odisha yet to assess MMDR Act’s revenue impact: Minister | Bhubaneswar News


Odisha yet to assess MMDR Act’s revenue impact: Minister

Bhubaneswar: Amid concerns raised by opposition parties that the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2026 could result in substantial revenue losses for mineral-rich states such as Odisha, the state govt on Thursday informed the assembly that no assessment has yet been made of its likely financial impact.Replying to queries from at least 10 MLAs, steel and mines minister Bibhuti Bhusan Jena said, “The impact of the amended law could be evaluated only after the Centre frames relevant rules under the revised Act.” The govt will examine the impact after the rules are framed, he said.The issue has triggered a political storm in the state. Congress has been protesting in the assembly for the past three days demanding withdrawal of the amendment, while the opposition BJD has also been seeking its rollback.Leader of Opposition Naveen Patnaik recently wrote to chief minister Mohan Charan Majhi urging him to convene a special session of the assembly and pass a resolution seeking repeal of the Act. He also appealed to Odisha’s BJP MPs to raise the issue with Centre.In a written response to a question by BJD MLA Kalikesh Narayan Singh Deo, Jena said the state govt has not conducted any quantified assessment of the impact of Section 9D of the amended law on Odisha’s revenue from taxes and levies on mineral rights and mineral-bearing land.“The financial implications will be examined with reference to the operative provisions of the amended Act and the relevant rules, conditions and restrictions as and when applicable,” the minister stated.He added that the govt has also not made any final assessment on the amount of arrears, if any, that may become unrecoverable or the annual revenue impact attributable specifically to Section 9D.The provision bars states from imposing taxes, cesses or other levies on mineral rights and mineral-bearing land unless such levies are permitted under conditions prescribed by Centre.The amendment has drawn criticism from opposition parties, which argue that it dilutes states’ taxation powers over mineral resources. They point to Supreme Court’s 2024 judgment in the Mineral Area Development Authority (MADA) vs Steel Authority of India Ltd (SAIL) case, which upheld states’ power to tax mineral rights and mineral-bearing land. Critics contend that Section 9D effectively curtails that power and could impact revenue prospects for mineral-rich states such as Odisha.The issue drew questions from members across party lines, including Congress MLA Tara Prasad Bahinipati, BJP’s Prakash Soren and BJD MLAs Sarada Prasanna Jena, Ananta Narayan Jena, Ganeswar Behera, Arvind Mohapatra, Dhruba Charan Sahoo, Byomakesh Ray and Arun Kumar Sahoo.



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