BHUBANESWAR: The political blame-game over the Mines and Minerals (Development and Regulation) Amendment Act intensified on Friday, with the BJP and BJD trading charges over its implications for Odisha.
Defending the Centre’s move, BJD leader and former Rajya Sabha MP Amar Patnaik said at a media-conference here that the amendment will not hit Odisha’s revenue. Its objective, he said, is to ensure uniformity in mining rules across states and to make the regulatory regime more predictable.
He dismissed allegations that states have been stripped of powers, stating they can still levy taxes, but within a defined ceiling. Earlier, there was no uniform cap on quantum and timing of such levies, leading to wide variation. Different tax structures, he argued, make mining unsustainable and deter investors.
Patnaik said existing royalty and District Mineral Foundation (DMF) income will remain intact, and 90 per cent of DMF funds will continue to flow to Odisha. He claimed revenues could actually rise by about 40 per cent due to higher investments.
He also turned the heat on the previous BJD regime, alleging misutilisation of DMF money flagged by the CAG, with funds meant for mining-affected areas diverted elsewhere. The BJD was spreading confusion after ruling the state for 24 years, he added.
Countering him, BJD spokesperson Lenin Mohanty described Patnaik’s defence as baseless and anti-Odisha. Mohanty said representing the state government before the Supreme Court, advocate general Pitambar Acharya had stated that the state would gain more than Rs 1 lakh crore towards arrears, and argued that Odisha would suffer a massive loss if the amount was not received.
He reiterated that Odisha stands to lose around Rs 12,000 crore annually due to the new regime and dared Patnaik to place evidence to substantiate his claim of revenue increase.