Bhubaneswar: Former Union Minister and Sambalpur MP Dharmendra Pradhan on Saturday defended the Mines and Minerals (Development and Regulation) Amendment Act, 2026, asserting that the legislation protects Odisha’s mining revenues, local industries and employment while promoting long-term economic growth.
In a letter addressed to Leader of Opposition in the Odisha Assembly Naveen Patnaik, Pradhan rejected concerns over the state’s revenue share under the amended legislation, terming them “factually incorrect”. He said approximately 90 per cent of the total mining sector revenues 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.
Pradhan also credited the Narendra Modi government’s 2015 MMDR reforms with transforming Odisha’s mining revenue collection. He said mining revenue, which was around Rs 5,000 crore annually before 2014, increased nearly tenfold to around Rs 50,000 crore a year following the introduction of mandatory transparent e-auctions and the increase in ad-valorem royalty from 10 per cent to 15 per cent.
He argued that imposing arbitrary and multiple levies on mineral-bearing lands could have adversely affected Odisha’s industrial ecosystem, particularly mining and manufacturing operations in Kendujhar, Sundaragada, Jharsuguda, Anugola and Jajpur. Such levies, he said, could have increased input costs for steel, cement, power and coal and ultimately placed an additional burden on consumers.
Pradhan said Section 9D of the amended legislation establishes a ceiling to prevent what he described as predatory multi-level taxation while safeguarding basic state revenues.
On the welfare of mining-affected communities, the former Union Minister said the DMF framework established in 2015 had generated more than Rs 2,37,000 crore for local development in Odisha’s mining districts, supporting projects related to drinking water, healthcare, education and rural roads.
He also alleged financial irregularities in the utilisation of DMF funds during the previous state government’s tenure, citing CAG audit findings. According to Pradhan, Rs 2,983 crore was spent in 976 non-affected villages while 584 directly affected villages received no project funding, while 1,730 projects were executed without following the Gram Sabha process.
Pradhan further criticised the previous government over the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004, stating that after the High Court struck it down in 2005, the matter remained before the Supreme Court for 18 years without validation legislation being brought before the state Assembly.
The Sambalpur MP said MPs from his side voted in favour of the MMDR Amendment Bill, 2026, keeping in view the larger interests of Odisha and its people, particularly the state’s youth.
He urged Patnaik to support the legislation, maintaining that it would facilitate industrial and economic growth while securing long-term employment opportunities for the state’s youth.
