---
title: "Odisha Ex-CM Patnaik Warns New Minerals Law Undermines State Rights"
url: https://projectchintan.com/article/odisha-ex-cm-patnaik-criticizes-new-minerals-law-r3htu
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-14T19:22:53.781Z
modified: 2026-08-14T22:00:05.609Z
language: en-IN
---

# Odisha Ex-CM Patnaik Warns New Minerals Law Undermines State Rights

Former Odisha Chief Minister Naveen Patnaik has criticized the newly passed Mines and Minerals (Development and Regulation) Amendment Bill, 2026, asserting it infringes on the state's financial and constitutional rights over its natural resources. Patnaik argues the law will lead to significant reve

## Key takeaways

- Former Odisha Chief Minister Naveen Patnaik argues the new Mines and Minerals (Development and Regulation) Amendment Bill, 2026, infringes on the state's financial and constitutional rights.
- He asserts the law will cause significant revenue losses for Odisha and impede its development, while also weakening federalism.
- Patnaik called for an all-party meeting and a special Assembly session to address the bill's perceived negative impacts on the state's fiscal autonomy and natural resource revenue.
- The bill reportedly centralizes control over mineral-bearing lands and limits states' ability to levy taxes on mineral rights, a power recently affirmed by the Supreme Court.

Former Odisha Chief Minister Naveen Patnaik has voiced strong objections to the recently passed Mines and Minerals (Development and Regulation) Amendment Bill, 2026, stating it infringes upon the state's financial autonomy and constitutional rights concerning its natural resources. Patnaik, who also leads the Biju Janata Dal (BJD) and serves as Leader of the Opposition in the state Assembly, warned that the legislation poses a significant threat to Odisha's fiscal autonomy.

## What Happened

Patnaik articulated his concerns in a letter to the current Odisha Chief Minister, Mohan Charan Majhi. He highlighted that the bill's provisions, particularly the expansion of Union control to include "mineral-bearing lands" and the prohibition on states levying taxes or cesses on mineral rights, represent an encroachment on state jurisdiction. The BJD president stated that these amendments grant the Central government sole authority to restrict states' power to tax minerals, which he views as a severe blow to federalism and state revenue autonomy.

## Why It Matters

According to Patnaik, the new law will disproportionately affect mineral-rich states like Odisha, potentially causing massive revenue losses and impeding the state's developmental initiatives. He emphasized that revenue from mining is essential for funding healthcare, education, social welfare, and infrastructure in Odisha. Patnaik argued that by removing the state's power to tax its own mineral resources, the Union government is leaving Odisha with the burdens of mining, such as pollution and displacement, while diverting the benefits away from its people.

## Background

The passage of the bill follows a July 2024 Supreme Court ruling that affirmed states' authority to levy taxes on mineral rights and mineral-bearing land, allowing them to collect arrears without interest or penalty. This ruling was anticipated to result in substantial financial gains for Odisha. Historically, the BJD-led government enacted the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act in 2004 to levy taxes on mines, but this law was later struck down by the Orissa High Court in December 2005, with the matter currently pending in the Supreme Court.

## Key Facts

- Former Odisha Chief Minister Naveen Patnaik has raised concerns about the Mines and Minerals (Development and Regulation) Amendment Bill, 2026.
- Patnaik stated the bill infringes on the state's financial rights and poses a threat to Odisha's fiscal autonomy and constitutional rights.
- He argued the law will lead to significant revenue losses and hinder the state's developmental agenda.
- The bill reportedly expands Union control to include "mineral-bearing lands" and prohibits states from levying taxes on mineral rights.
- Odisha currently earns approximately Rs 50,000 crore annually from the mining sector.
- A July 2024 Supreme Court ruling upheld states' power to levy taxes on mineral rights and land.
- The BJD party opposed the bill in the Rajya Sabha.

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Canonical: https://projectchintan.com/article/odisha-ex-cm-patnaik-criticizes-new-minerals-law-r3htu
Reported from: Multiple Sources