Yet to assess impact of mines Act on Odisha, says Minister as legislators flag potential loss
The Odisha Assembly debated the potential revenue loss to the state due to the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which curtails states' power to impose taxes on mineral rights. The Steel and Mines Minister stated that the state has not yet quantified the financial impact and will assess it after the Central government formulates necessary rules.
Why it matters
This issue highlights the ongoing tension between central and state governments over resource control and revenue generation, potentially impacting Odisha's finances and its ability to fund public services, while also setting a precedent for other mineral-rich states.
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.
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