Bhubaneswar, Aug 29: Sambalpur MP and former Union Minister Dharmendra Pradhan on Saturday launched a sharp attack on Biju Janata Dal (BJD) president and Leader of Opposition Naveen Patnaik over his concerns regarding the Mines and Minerals (Development and Regulation) Amendment Act, 2026.
Responding to Patnaik’s letter to Odisha MPs, Pradhan accused the former Chief Minister of concealing facts and creating unfounded fears among the people of Odisha. He said political debate was an essential part of democracy but maintained that elected representatives had a larger responsibility to protect Odisha’s economic and structural interests while contributing to national development.
Describing the MMDR Amendment Act as a historic measure, Pradhan said the legislation would support economic growth, accelerate infrastructure development, protect State revenues and help shield citizens from inflationary pressures.
Rejecting Patnaik’s apprehension that Odisha could lose mining revenue under the amended law, Pradhan termed the concern “completely unfounded.” According to him, nearly 90 per cent of the total revenue generated from mining would continue to flow into the State exchequer. He said Odisha would retain 110 per cent of the auction premium, 15 per cent royalty and its entire share of District Mineral Foundation (DMF) funds.
Pradhan contrasted the current system with the period before 2014, alleging that mineral resources were then allocated through non-transparent mechanisms, restricting Odisha’s annual mining revenue to around Rs 5,000 crore. He said the MMDR reforms introduced in 2015 brought transparent e-auctions and increased the royalty rate from 10 per cent to 15 per cent. As a result, he claimed, the State’s annual mining revenue rose nearly tenfold to around Rs 50,000 crore.
The former Union Minister also warned about the possible impact of arbitrary levies on mineral-bearing land. He said unlimited levies could have affected mining and industrial operations in mineral-rich districts such as Keonjhar, Sundargarh, Jharsuguda, Angul and Jajpur, potentially threatening the livelihoods of lakhs of young people.
He further argued that such levies could increase the cost of raw materials used by industries producing steel, cement and electricity, as well as coal, ultimately adding to the financial burden on middle-class households.
Pradhan said Section 9D of the amended legislation establishes a specific limit on such levies, thereby addressing the concerns raised by the Opposition and preventing arbitrary taxation.
Highlighting the role of the District Mineral Foundation, Pradhan claimed that Odisha had received more than Rs 37,000 crore through the DMF since 2015 for development in mining-affected areas.
Citing findings he attributed to a Comptroller and Auditor General (CAG) report, Pradhan alleged that during the previous BJD government, Rs 983 crore was spent across 976 villages that were not affected by mining, while 584 directly affected villages received no funds. He also claimed that the audit found 1,730 projects had been undertaken without obtaining approval from Gram Sabhas.
Pradhan also criticised the previous BJD government over the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004. He alleged that after the Act was struck down by the High Court in 2005, the State government spent nearly 18 years pursuing the matter in the Supreme Court instead of introducing corrective amendments in the State Assembly.
The Sambalpur MP said Odisha MPs supported the MMDR Amendment Bill, 2026 in Parliament keeping in mind the State’s larger economic interests, industrial development and employment opportunities for the younger generation.
Pradhan urged Naveen Patnaik to rise above partisan politics and support what he described as landmark legislation aimed at strengthening Odisha’s economy, protecting employment and ensuring the State’s long-term development.
