Bhubaneswar: Former Union Education Minister and Sambalpur MP Dharmendra Pradhan has strongly defended the Mines and Minerals (Development and Regulation) Amendment Act, 2026, while responding to a letter from Odisha Leader of Opposition and Biju Janata Dal (BJD) president Naveen Patnaik to BJP Members of Parliament from the state.
Pradhan rejected Patnaik’s concerns over the legislation, stating that political debate is an essential feature of democracy but alleged that “concealing facts” and creating unfounded fear among the people of Odisha was unacceptable.
https://x.com/ANI/status/2093689450039763226?s=20
In his response, Pradhan said Odisha’s MPs have a primary responsibility to safeguard the state’s long-term economic and structural interests while contributing to national development. He described the MMDR Amendment Act, 2026, as a “historic step” that would promote economic growth and infrastructure development, protect state revenues and local industries, and shield citizens from inflationary pressures.
Pradhan rejects concerns over Odisha’s mining revenue
One of the key issues raised by Patnaik was the potential impact of the amended mining legislation on Odisha’s revenue. Rejecting the apprehension that the state could suffer a loss of mining revenue, Pradhan claimed that approximately 90 per cent of the total revenues generated from the mining sector would continue to accrue directly to state treasuries.
According to Pradhan, Odisha would retain 110 per cent of its auction premiums, 15 per cent of royalties and collections under the District Mineral Foundation (DMF) framework.
He argued that the provisions of the amended legislation would therefore ensure that Odisha’s financial interests remain protected while allowing the mining sector to contribute to broader economic development.
Mining revenue increased tenfold after 2015 reforms
Pradhan also highlighted what he described as a significant increase in Odisha’s mining revenue over the past decade. He alleged that prior to 2014, mining concessions were distributed through non-transparent mechanisms, resulting in Odisha’s annual mining revenue remaining at around ₹5,000 crore.
https://x.com/dpradhanbjp/status/2093689047390585030?s=20
According to Pradhan, the MMDR reforms introduced by the Narendra Modi government in 2015 brought mandatory transparent e-auctions and increased the ad-valorem royalty rate from 10 per cent to 15 per cent.
He claimed that the reforms subsequently helped Odisha’s mining revenue rise nearly tenfold to around ₹50,000 crore annually. Pradhan attributed the growth to the transparent auction-based system introduced through the Central government’s reforms and argued that the changes had strengthened the state’s financial position.
Warns against multiple levies on mineral-bearing land
Addressing concerns over taxation and levies on mineral-bearing land, Pradhan said excessive and multiple levies could have a damaging impact on Odisha’s industrial ecosystem.
He pointed to major mining and industrial districts, including Keonjhar, Sundargarh, Jharsuguda, Angul and Jajpur, and argued that open-ended levies could put significant financial pressure on mining operations and manufacturing units.
According to Pradhan, any substantial increase in the cost of mineral inputs would have wider consequences for industries such as steel, cement, power and coal. He further argued that higher industrial input costs could eventually affect ordinary households by increasing construction costs, electricity tariffs and the prices of essential commodities.
Pradhan said Section 9D of the amended legislation establishes a ceiling on such levies, which, according to him, would prevent excessive taxation while ensuring that the state’s basic revenues remain protected.
₹37,000 crore generated through DMF, Says Pradhan
The Union Minister also highlighted the role of the District Mineral Foundation in supporting communities affected by mining activities.
Pradhan stated that more than ₹37,000 crore had been generated in Odisha through the DMF framework for development in mining districts. He said the funds were intended to support essential sectors such as clean drinking water, healthcare, education and rural infrastructure.
However, he also raised questions over the utilisation of DMF funds during the previous state government’s tenure. Citing CAG audit observations, Pradhan alleged that ₹1,983 crore had been spent in 976 non-affected villages, while 584 villages directly affected by mining activities received no project funding.
He further alleged that 1,730 projects had been executed without following the Gram Sabha process. These allegations are likely to add another dimension to the ongoing political debate between the BJP and BJD over the management of Odisha’s mineral resources and mining revenues.
Raises ORISED Act issue
Pradhan also criticised the previous BJD government over the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004.
Referring to the High Court’s decision to strike down the legislation in 2005, he alleged that the state government subsequently pursued the matter in the Supreme Court for 18 years without introducing validation legislation in the Odisha Assembly to address the legal shortcomings.
By raising the ORISED issue, Pradhan sought to question the record of the previous government on legislative and administrative measures concerning rural infrastructure and socio-economic development.
Odisha MPs supported the bill in state’s interest
Pradhan further defended the decision of Odisha MPs who supported the MMDR Amendment Bill, 2026, in Parliament. He said the support was extended in the larger interest of Odisha and its people, particularly the state’s youth, and urged Naveen Patnaik to look beyond political differences and support the legislation.
According to Pradhan, the amended mining law would help strengthen Odisha’s industrial and economic growth while creating and securing long-term employment opportunities for the state’s youth.
Patnaik had urged BJP MPs to reconsider support
The exchange follows a letter written by Naveen Patnaik to BJP MPs from Odisha on August 29, in which the BJD president and Leader of Opposition urged them to reconsider their support for the MMDR Amendment Bill, 2026.
https://x.com/Naveen_Odisha/status/2093583350317649969?s=20
Patnaik had raised concerns over what he described as potentially serious long-term financial and administrative implications of the legislation for Odisha. The former Chief Minister’s appeal came amid a wider political debate over the proposed changes to the mining regulatory framework and their potential impact on mineral-rich states such as Odisha.
Pradhan’s latest response has intensified the political exchange, with the Former Union Minister seeking to counter Patnaik’s objections by highlighting Odisha’s mining revenue growth, DMF allocations, safeguards against excessive levies and the role of the amended legislation in promoting industrial development.
