The Odisha government and opposition clashes escalate as new mining laws aim to boost industry competitiveness but raise concerns over fiscal autonomy, sparking protests and political debates.
Odisha’s ruling Bharatiya Janata Party has dismissed opposition warnings that a new mining law will strip the state of revenue, arguing instead that reforms will make the sector more competitive and ultimately more profitable.
The row has sharpened political tensions in the mineral-rich state after the passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026. The Biju Janata Dal and the Congress are preparing protests, saying the change could weaken Odisha’s fiscal autonomy and reduce state control over mining regions. BJD president Naveen Patnaik and Odisha Pradesh Congress Committee chief Bhakta Charan Das have called for an all-party meeting and a special Assembly session to assess the bill’s impact.
BJP spokesperson Anil Biswal said the law would not cost Odisha “a single rupee” and claimed it would bring in more revenue through a more transparent auction system. He pointed to a rise in royalty collections from about Rs 5,000 crore in 2013, when Congress was in power, to roughly Rs 48,000 crore a year under the NDA after earlier changes to the mining law in 2015. Biswal also said the District Mineral Foundation, which channels money from mining to local development, was generating an additional Rs 8,000 crore to Rs 10,000 crore annually for mining districts.
The new law is part of a broader attempt to overhaul India’s mining regime. Parliament approved the amendment to modernise mineral policy, with a particular focus on critical and strategic minerals, while policy guidance from the International Energy Agency says the 2025 changes are meant to speed up production, expand exploration and support a more open minerals market. Separate notifications from the mines ministry this year have also moved to simplify leases and broaden the inclusion of associated minerals, reflecting a wider push to improve supply for sectors such as semiconductors and reduce dependence on imports.
Congress leader and former finance minister Panchanan Kanungo rejected the BJP’s argument, saying the jump in royalty receipts was largely driven by a surge in global iron ore prices rather than by any change in policy alone. The disagreement underscores a familiar fault line in Odisha politics: whether mining reforms are a route to higher growth and investment, or a transfer of power away from the state.
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