The ruling BJP in Odisha asserted on Monday that the state will suffer no revenue loss from the newly enacted Mines and Minerals (Development and Regulation) Amendment Bill, 2026, arguing instead that it will gain from a more competitive mining ecosystem.
The state government’s assertion follows plans by opposition parties BJD and Congress to stage demonstrations against the legislation, alleging that it erodes Odisha’s fiscal autonomy and weakens its authority over mineral-rich areas.
BJD chief Naveen Patnaik and Odisha Pradesh Congress Committee (OPCC) president Bhakta Charan Das have pressed for an all-party meeting and a special session of the state Assembly to discuss the potential economic fallout of the legislation on the state.
According to BJD estimates, Odisha faces a potential revenue loss of nearly Rs 12,000 crore annual once the new provisions take effect.
Dismissing these claims, BJP spokesperson Anil Biswal maintained, “The new amendment will not in any way cause a single rupee of revenue loss to Odisha, but will provide more revenue in the competitive market.”
Biswal highlighted that Odisha drew a modest Rs 5,000 crore in mining royalties in 2013 under Congress rule, whereas collections surged to Rs 48,000 crore annually under NDA administration following the 2015 MMDR reforms.
“The state received windfall gains due to auction of mineral resources in a transparent manner, which was not possible earlier during the Congress rule,” he said.
He further explained that the competitive auction premium model drove up bidding values for mineral blocks, yielding substantial windfalls for state coffers.
Additionally, the District Mineral Foundation (DMF) introduced by the BJP-led government has injected an extra Rs 8,000 crore to Rs 10,000 crore directly into mining-affected districts every year for local infrastructure and welfare, Biswal stated.
“If the BJD and Congress were really so concerned about the interests of the state, they should explain why the revenue collection was low during their rule and whose pocket that money was going to?” he asked.
Biswal emphasized that the amended law will establish a “stable, clear regulatory system” to the mining landscape, elevating the Indian mineral industry on global markets.
He added that the framework will fast-track the exploration and extraction of critical and strategic minerals crucial to national priorities.
Once implemented, raw materials required for advanced sectors like semiconductor will be accessible to domestic manufacturers at uniform national rates, fostering greater investment, industrial expansion, job creation, and sustainable growth, he claimed.
Countering the BJP’s stance, senior Congress leader and former state finance minister Panchanan Kanungo challenged the ruling party’s narrative.
“During the Congress regime, the international price of iron ore was only between Rs 200 and Rs 300 per tonne. Later, it reached Rs 3,000 to Rs 4,000 per tonne. Therefore, there is no surprise that mineral royalty revenue increased,” Kanungo said.
