Yet to assess impact of mines Act on Odisha, says Minister as legislators flag potential loss

The Odisha Assembly on Thursday was flooded with queries on the potential loss to the State exchequer following the implementation of the Mines and Minerals (Development and Regulation) Amendment Act, 2026. Recent amendments made by Parliament have curbed the power of State governments to impose taxes, cess, and other levies on mineral rights and mineral-bearing lands.

Legislators cutting across party lines sought to know whether the government has assessed the impact of the Act, particularly Section 9D, which stops State governments from placing independent taxes or cesses on mineral rights or mineral-bearing lands without the Union government’s approval, on Odisha’s revenue. Written answers were sought through as many as 13 questions.

Replying to the questions, Steel and Mines Minister Bibhuti Bhusan Jena said the State government has not yet conducted a quantified assessment of the impact of Section 9D on the State’s revenue.

“No specific estimate of financial gain or loss has been made at this stage regarding the amended provisions,” the Minister said, adding that the State government will assess the financial impact after the Central government formulates the necessary rules and regulations.

Opposition parties also stated that Odisha’s Advocate General, while arguing for the State in the Supreme Court, had justified imposing a levy on mineral-bearing lands. To this, the Minister said the figures and positions referred to as having been published in the Odisha Review, a government publication, or placed before the Supreme Court were not being treated as departmental assessment for the purpose of quantifying the present financial impact of Section 9D.

“Any such comparison would be made only after the legal and operational implications of the amended provision are fully ascertained,” he said.

Responding to questions raised by several MLAs, including the ruling BJP’s Prakash Soren, Mr. Jena said appropriate measures would be taken in accordance with existing laws and statutory provisions to safeguard the State’s mineral resources and revenue interests.

The Minister’s reply comes even as Chief Minister Mohan Majhi and former Union Education Minister Dharmendra Pradhan had earlier dismissed concerns about possible loss to the State exchequer due to the recent amendments.

Call for protests

Meanwhile, the BJD and the INDIA bloc parties have called for protests in front of the Assembly on September 28 and 29 respectively alleging that the State stands to lose over ₹1 lakh crore in tax arrears and ₹12,000 crore in annual revenue as per the provisions of the amended Act.

The BJD said party president Naveen Patnaik would lead its rally to demand repealing of the Act. “Since Odisha possesses 44% of the total mineral resources available in the country, the State will suffer the maximum loss,” the party stated, adding that it was unfortunate that State BJP leaders have been arguing that Odisha will benefit rather than suffer losses. The BJD said the protest would be expanded to the entire State.