The Biju Janata Dal (BJD) has launched a massive protest against the MMDR Amendment Act 2026, claiming it could strip Odisha of over ₹1 lakh crore in arrears and ₹12,000 crore in annual revenue.
- BJD petitioned President Droupadi Murmu for the reversal of the MMDR Amendment Act 2026.
- Estimated loss of ₹1 lakh crore in arrears and ₹12,000 crore in annual revenue for Odisha.
- Party alleges the act undermines state fiscal autonomy and constitutional rights.
In a high-voltage demonstration in Bhubaneswar on Wednesday, the Biju Janata Dal (BJD) demanded immediate constitutional intervention to reverse the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2026. Party leaders marched to the Lok Bhavan to submit a detailed memorandum to President Droupadi Murmu via Governor Hari Babu Kambhampati, warning of severe financial repercussions for the state.
Odisha, being one of India's most mineral-rich states, has long been a cornerstone of the nation's industrial growth. With vast reserves of iron ore, coal, bauxite, and chromite, the state relies heavily on mining revenue to fund its public welfare and infrastructure projects. BJD leaders argued that any law curtailing these rights is a direct attack on the state's natural wealth.
Why This Matters
BozokMedia analysis shows that this conflict stems from a clash between judicial interpretation and legislative action. A landmark Supreme Court judgment on July 24, 2024, had affirmed the power of State governments to levy taxes on mineral-bearing lands. By introducing the 2026 Amendment, the Union government appears to be reclaiming control, effectively neutralizing the court's pro-state verdict. This sets a precarious precedent for fiscal federalism in India.
"The shift toward centralized control over mineral-bearing lands threatens the financial stability of resource-rich states, potentially stalling regional development."
The BJD's memorandum specifically highlights concerns over Section 2, 9D, and 13 of the amended Act. They argue that expanding Union control to include 'mineral-bearing lands' and restricting states from levying cesses or similar charges severely hampers Odisha's ability to manage its own resources.
Furthermore, the party urged the Governor to invoke Article 244(1) of the Fifth Schedule, which provides a special framework for the administration of Scheduled Areas. The BJD contends that the loss of ₹1 lakh crore in arrears will cripple the state's capacity to invest in healthcare, education, and rural irrigation.
| Feature | SC Judgment (July 2024) | MMDR Amendment (2026) |
|---|---|---|
| Taxation Power | Granted to State Governments | Restricted/Centralized |
| Revenue Impact | Potential ₹1 Lakh Cr+ Arrears | Significant Revenue Loss |
| Control Model | Balanced Federalism | Increased Union Control |
Frequently Asked Questions
1. What is the BJD's primary grievance against the MMDR Act 2026?
The party believes the amendment strips Odisha of its right to collect massive mining arrears and annual taxes, undermining its fiscal autonomy.
2. Which constitutional provision did the BJD invoke?
The BJD urged the Governor to use his powers under Article 244(1) (Fifth Schedule) regarding the administration of Scheduled Areas.
