By Our Correspondent
BHUBANESWAR:There is a big difference between giving press conferences and making statements to the media and the actual approach. For the past few days, the opposition parties including the BJD and the Congress have been spreading negative propaganda regarding the amended MMDR Act-2026. Especially, the BJD, which has been in power for 24 years, is now coming to the media and spreading misinformation.
The BJD government looted the mining and mineral resources sector like killing the goose that lays golden eggs. In reality, it is clear that during the BJD’s rule, its approach towards mining reforms and immediate revenue generation was different. The previous government did nothing for the development of the mining sector. Widespread irregularities and corruption have been exposed in the DMF scheme. There was widespread looting of the BJD government’s revenue. Senior leader and former Rajya Sabha MP Shri Amar Patnaik said that the approach of BJD, Congress and like-minded opposition parties, which opposed financial reforms like GST in the past, is being reflected in the MMDR legal reforms.
Addressing a press conference at the state office, Shri Patnaik said that the main objective of the amended MMDR Act-2026 is to ensure proper management, protection, control and fair allocation of the country’s mineral resources. Tax chaos will be eliminated by removing 14 different types of taxes, cesses, fees, etc. of different states. The state-level tax system will be brought into uniformity in all states. This will be beneficial for the overall growth of the mining sector by bringing predictability and institutional stability. It will make mining operations commercially profitable and competitive.
The interests of the consumers will be protected by controlling the prices of mining-based industries and commodities like cement, iron ore, steel, etc. It will attract new investors in the mining sector. Although it is a central government project, it provides royalty and revenue to the states, which plays an important role in the economy of the state. Any changes in this law are made by the Central Government.
Due to the implementation of this law, the mining sector in Odisha, which is rich in mineral resources, has undergone reforms and transparency, and the economy has made rapid progress. According to the new law of the Center, the mining regions and states will benefit from uniformity in the tax process. There will be no high tax on industry and industrialization.
Various problems are created by the uneven imposition of taxes or other fees by the State Governments on mineral rights and mineral-rich land without reasonable limits. Similarly, the State Government can impose taxes by following the rules set by the Central Government.
The statements of the opposition such as the reduction of the power of the state, the federal system being undermined, and the financial loss of the state are very misleading and ridiculous. Perhaps, the opposition parties have not read the newly amended law and the judgment of the Honorable Supreme Court properly or are unable to understand it, said Shri Patnaik.
Those who are crying crocodile tears today about mining and the amended MMDR Act-2026, where did they go till 2015? After the BJP government came to power under the leadership of Prime Minister Shri Narendra Modi, the e-auction system was introduced for the first time. Before this, the previous governments used to hand over the mines to the mining mafia at a pittance on the basis of certain families. The mining mafia used to extract minerals illegally and arbitrarily, looting minerals and making money, but the state did not get anything.
The then CAG report and later the Shah Commission report in 2014 revealed that there was corruption of about Rs 60,000 crore and the Shah Commission recommended a CBI investigation into the corruption. Why did the then BJD government oppose the CBI investigation? On the other hand, why did the BJD government collect only Rs 15,000 crore from 2015 to 2024 out of the imposed fine of Rs 60,000 crore? If the state’s interests were given priority, the then BJD government could have collected the entire fine of Rs 60,000 crore, but why didn’t it? Similarly, during its rule, why did the BJD government waive off electricity dues of Rs 4,097 crore and water tax worth crores of rupees of 14 major industries? Why didn’t the fear of revenue loss due to this cross their minds, asked Shri Patnaik.
More than 90 percent of the revenue collected from the mining sector goes to the state government, as the benefits of royalty and DMF scheme introduced by the central government go to the state and not to the centre. After 2015, after the reforms in the MMDR Act, mining areas have been allocated through mineral distribution and e-auction. Due to the revised royalty policy and e-auction, Odisha’s mining revenue collection has improved by 861 percent. While the revenue collected in 2015 was only Rs 3300 crore, now this amount has reached Rs 53 thousand crore. By saying that the central government and the BJP government do not want to develop Odisha, the BJD and the Congress are only misleading the people of the state. In reality, the power of the state will be completely protected and this will not be a loss but a benefit for the state, said Shri Patnaik.
As per entry number 18, land is a subject matter of the State Government.
In 2004, under the ‘ORISED Act’, the State Government introduced a system of levying 20 percent tax on land. Later, the Hon’ble High Court stayed it, which is currently pending before the Hon’ble Supreme Court and no decision can be taken on it. The enactment of the amended MMDR Act-2026 will definitely be beneficial for Odisha in the long term. The State will not suffer any loss in mining royalty and DMF, but will benefit.
The ‘One Nation – One Mineral Market’ system like GST will promote balanced growth of the mining sector across the country in the long term. Due to the enactment of the amended MMDR Act-2026, industrialization in a mineral-rich state like Odisha will increase, new jobs and employment will be created, and ‘Ease of Business’ will be accelerated. If Odisha progresses, the country will develop and the dream of creating a prosperous Odisha by 2036 and a developed India by 2047 will be fulfilled, said Shri Patnaik.
MLAs Shri Ashok Mohanty and Shri Agasti Behera, State Media Coordinator Shri Sujit Kumar Das were prominently present on the occasion of this press conference.
