Odisha Yet to Quantify Revenue Impact of Amended MMDR Act

The Odisha government has not yet carried out a detailed assessment of the financial impact of the amended MMDR Act, 2026, including the mineral tax arrears that could potentially become unrecoverable, Steel and Mines Minister Bibhuti Bhushan Jena informed the State Assembly.
The minister was responding to questions raised by Opposition members amid continued protests by the BJD and Congress over the MMDR Amendment Act. The protests have disrupted proceedings of the Assembly during the ongoing monsoon session.
Jena said the state has not so far assessed the financial implications of Section 9D of the amended law. The provision places restrictions on states imposing taxes, cess or other levies on mineral rights and mineral-bearing land.
According to the minister, the government will examine the financial impact based on the operative provisions of the amended Act, along with the applicable rules, conditions and restrictions.
He also clarified that no final calculation has been made regarding pre-amendment tax arrears, the amount that could become unrecoverable or the annual revenue loss specifically linked to Section 9D.
BJD MLA Kalikesh Narayan Singh Deo had sought details on the likely impact of the provision and whether Odisha would continue to receive revenue and arrears mentioned in earlier government documents. Jena said figures published in the Odisha Review or submitted before the Supreme Court were not being considered as departmental assessments for determining the current financial impact.
In a separate response, the minister said Odisha has also not completed 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 judgment and August 14, 2024 order.
He said final figures relating to tax assessments, demands, recoveries, affected leaseholders and outstanding dues were not available as the matter remained sub judice.
The Supreme Court’s 2024 ruling in the Mineral Area Development Authority versus Steel Authority of India case had upheld the states’ power to impose taxes on mineral rights under Entry 50 of the State List.
The subsequent MMDR amendment, notified on August 22, 2026, has raised concerns in Odisha over the extent of the state’s taxation powers. The state government has maintained that the financial impact can be determined only after the rules and operational framework of the amended law become clear.