Digging for gold
The MMDR Amendment Bill, 2026, raises concerns in Odisha over mineral rights, fiscal health, and community impacts amidst political tensions.
Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which put the extraction and management of minerals in the hands of the Central government. Many in Odisha, one of India’s most mineral-rich States, fear that the new law will impact the State’s fiscal health, while also disrupting the Centre-State relationship. Satyasundar Barik delves into the amendment’s far-reaching implications through the views of multiple stakeholders
Published - August 24, 2026 05:30 am IST
A farmer cultivating paddy on land in Sukinda valley, Odisha, which he alleges has been contaminated by sludge from chromite mines. | Photo Credit: Biswaranjan Rout
In the second week of August, former Chief Minister Naveen Patnaik wrote to Chief Minister Mohan Charan Majhi, urging him to convene a special session of the Odisha Legislative Assembly. There was no natural disaster or extraordinary occasion to warrant such a demand. Yet, for the political fraternity, particularly the Opposition parties, the largest being Patnaik’s Biju Janata Dal (BJD), the issue was serious enough to be described as a potential financial disaster for Odisha.
The immediate trigger was the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which was passed by both Houses of Parliament on August 13. It became an Act after it got the assent of President Droupadi Murmu.
According to the Ministry of Mines’ 2024-25 annual report, mineral production (excluding Atomic, Fuel and Minor Minerals) was estimated in 20 States, of which about 97.70% of the total value was confined to eight States. Odisha accounted for the largest share, at 43.49%, followed by Rajasthan (16.26%), Chhattisgarh (13.69%), Karnataka (12.42%), Maharashtra (4.76%), Jharkhand (3.26%), Madhya Pradesh (2.78%) and Andhra Pradesh (1.04%). Remaining states contributed 2.30%.
A man showing red mud in a pond in Sukinda valley, alleging that sludge from nearby mines flows into it. All the chromite mines in the area are concentrated along a 20-km stretch. | Photo Credit: Biswaranjan Rout
The MMDR Act states its objective: “…in view of the larger public interest, the Union has taken under its control the regulation of mines and the development of minerals….” It also says that “extraction and management have to be guided by long-term national goals”. It also cites heavy and non-uniform taxes as adversely affecting mineral production.
Under the MMDR Act, “the Union will take under its control the regulation of mineral-bearing lands”. It also provides that “no tax, cess or such other levy (by whatever name called) shall be imposed by the State government on mineral rights or mineral-bearing lands”.
In its press release, the Central government said, “The amendment... will not take away any of the rights of the States on land and minerals or any tax on minerals collected by the States.” It also says the amendment will not impact minor minerals.
Several stakeholders in Odisha, however, feel that they could significantly erode the State’s authority over its mineral resources and adversely affect its fiscal interests. This is not just about mining policy or government revenue, but also about the people, mostly tribals, who have been living with the environmental and social costs of mining for generations.
People impacted on ground
In Ransol village, in Odisha’s Jajpur district, Ishwar Chandra Mohanta is battling cancer. He does not know how he developed the disease. However, Mohanta claims seven other people from his village have already died of cancer. His home lies in the Sukinda Valley, which contains 98% of India’s chromite resources.
The first chromite mine near his village was suspended in 2000, but for people like Mohanta, the consequences of decades of mining have not disappeared with the closure of a mine. Chromite mines are a source of dangerous hexavalent chromium pollution that has carcinogenic effects.
Mohanta represents the other side of Odisha’s mineral story. While the State’s vast reserves of iron ore, coal, chromite, and other minerals have attracted industries and generated enormous revenues, communities living around mining belts have often borne the environmental and health burdens.
Their grievances have traditionally been directed at the State government, which remains accountable to them for regulation, rehabilitation, environmental protection, and local development. The concern now is that the MMDR amendment could create a situation in which that accountability is blurred.
