On Monday, BJP MP Sambit Patra spoke in favor of the 2015 amendments to the Mines and Minerals (Development and Regulation) Act, pointing to enhanced transparency in mineral distribution and a notable increase in mining revenue for Odisha.
Representing the Puri Lok Sabha constituency, Patra noted that the annual mining revenue for the state surged from approximately Rs 3,300-5,000 crore prior to 2015 to around Rs 55,000-60,000 crore following the amendments, which instituted e-auction processes for mineral allocation.
He also mentioned that these amendments resulted in the establishment of District Mineral Foundations (DMFs), and Odisha has garnered roughly Rs 37,000 crore through these initiatives. Since 2015, auction premiums have expanded by 150 percent, along with a rise in royalty rates from 10 percent to 15 percent, he explained.
Addressing the issue of mineral cess, Patra indicated that the Odisha government legislated the Orissa Cess Act in 2004 to impose extra taxes on minerals to support the welfare of communities impacted by mining and tribal populations. He noted that NALCO contested the law in the Orissa High Court, which placed a stay on its implementation in December 2005. The subsequent state appeal evolved into a civil suit that has been pending in the Supreme Court for 18 years, he added.
Referencing the Supreme Court’s ruling in July 2024 in the case of Mineral Area Development Authority v. Union of India, Patra mentioned that states are permitted to recover certain overdue dues related to minerals. He challenged assertions that Odisha would incur a loss of Rs 1 lakh crore due to the recent MMDR amendment, asserting that the state has about Rs 62,000 crore in outstanding mineral-related revenue.
Patra also brought up the 2010 Shah Commission report, which examined alleged irregularities in the mining sector of Odisha, along with a 2017 Supreme Court decision regarding mining violations in districts rich in minerals.
He claimed that DMF funds were not utilized effectively during the prior BJD administration. Citing a CAG report, he stated that while Rs 976 crore out of over Rs 983 crore had been allocated to mining-affected villages, 584 such villages did not receive any assistance, and 1,730 projects were carried out without the necessary approval from gram sabhas.
Furthermore, Patra highlighted an increase in Odisha’s share from the Finance Commission, rising from 32 percent under the 13th Finance Commission to 42 percent under the 14th Finance Commission.
BJP MP Aparajita Sarangi, who joined Patra at the press conference, claimed that Odisha faced financial setbacks during the tenure of the previous BJD government.
