Digging for gold
The passage of the Mines and Minerals (Development and Regulation) Amendment Bill in India has sparked political tension in Odisha, with opposition leaders fearing a loss of state revenue. The Act centralizes control over mineral-bearing lands, limiting the ability of state governments to impose independent taxes on mineral rights.
Why it matters
This reflects a significant shift in federal-state fiscal relations regarding natural resource management in India.
In the second week of August, former Chief Minister Naveen Patnaik wrote to Chief Minister Mohan Charan Majhi, urging him to convene a special session of the Odisha Legislative Assembly. There was no natural disaster or extraordinary occasion to warrant such a demand. Yet, for the political fraternity, particularly the Opposition parties, the largest being Patnaik’s Biju Janata Dal (BJD), the issue was serious enough to be described as a potential financial disaster for Odisha.
The immediate trigger was the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which was passed by both Houses of Parliament on August 13. It became an Act after it got the assent of President Droupadi Murmu.
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