Odisha is yet to assess loss from MMDR Act: Minister Jena

The government’s response came amid a political standoff over the MMDR amendment, with the BJD and Congress demanding its withdrawal and disrupting House proceedings for the last four days.
Telangana Steel and Mines minister Bibhuti Bhushan Jena.
Telangana Steel and Mines minister Bibhuti Bhushan Jena.
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BHUBANESWAR: With the Opposition BJD and Congress protest over the MMDR Amendment Act, 2026, stalling proceedings of the Assembly since the start of the monsoon session, the state government on Thursday said it has not made any quantified assessment of the new law’s possible revenue impact, including the amount of mineral tax arrears that could become unrecoverable.

Replying to a series of questions from Opposition MLAs in the Assembly, Steel and Mines minister Bibhuti Bhushan Jena said the government has not yet examined the financial implications of Section 9D of the amended MMDR Act, which restricts states from imposing taxes, cess or other levies on mineral rights and mineral-bearing lands.

“The financial implications will be examined with reference to the operative provisions of the amended Act and the relevant rules, conditions and restrictions, as and when applicable,” Jena said in his written reply.

He also said there was no final assessment of the arrears recoverable before the amendment, any amount that may become unrecoverable or the annual revenue impact attributable specifically to Section 9D.

The government’s response came amid a political standoff over the MMDR amendment, with the BJD and Congress demanding its withdrawal and disrupting House proceedings for the last four days.

BJD MLA Kalikesh Narayan Singh Deo sought details of the impact of Section 9D, including whether the state would continue to receive revenue and arrears projected in earlier government-related publications. The minister said figures published in Odisha Review or placed before the Supreme Court were not being treated as departmental assessments for quantifying the present financial impact.

In another reply, Jena said that the state government has not undertaken a consolidated mineral-wise assessment of tax recoverable under the Odisha Rural Infrastructure and Socio-Economic Development (ORISED) Act following the Supreme Court’s July 25, 2024 judgement and August 14, 2024 order.

“No final figures on tax assessed, demands raised, recovery, leaseholders covered or outstanding dues were available as the matter remained sub-judice,” the minister said.

The Supreme Court’s 2024 ruling in the Mineral Area Development Authority vs Steel Authority of India case affirmed the states’ legislative competence to tax mineral rights under Entry 50 of the State List.

The subsequent MMDR amendment, notified on August 22, 2026, has triggered concerns in Odisha over the scope of state taxation powers. However, the state government has maintained that the financial implications can be assessed only after the amended law’s operational framework is fully clear.

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