INDIA Bloc Holds Torchlight Vigil in Odisha Against MMDR Amendment Act

The political battle over Odisha’s mineral wealth intensified as leaders of the INDIA bloc held a torchlight vigil at Master Canteen Square and burnt effigies of Chief Minister Mohan Charan Majhi and 20 BJP MPs from the state, protesting the Mines and Minerals (Development and Regulation) Amendment Act, 2026.

Leaders of the Congress, CPI(M), CPI, CPI(ML) Liberation, Forward Bloc, NCP and Samajwadi Party accused Odisha’s BJP MPs of remaining silent during Parliament’s passage of the legislation. Calling the law “anti-Odisha” and “anti-tribal,” they alleged it would weaken the state’s financial and constitutional rights over mineral-bearing lands and increase central control over mineral resources.

The agitation comes after Parliament passed the amendment during the Monsoon Session. The Bill was introduced in the Lok Sabha on August 10, passed on August 12 and cleared by the Rajya Sabha on August 13. A key provision restricts states from imposing taxes, cesses or other levies on mineral rights and mineral-bearing land except within conditions or restrictions prescribed by the Centre.

The controversy is particularly significant for Odisha, one of India’s major mineral-producing states. Opposition leaders argue that restrictions on state-level levies could affect a major source of revenue. Congress leader Debashish Patnaik claimed Odisha could lose more than ₹1 lakh crore and alleged that unpaid mining dues, if recovered, could amount to around ₹22,000 per person for the state’s 4.5 crore population. These figures are opposition estimates, not established revenue-loss projections.

The dispute has its roots in the July 2024 Supreme Court judgment, when a nine-judge Constitution Bench held that states have the power to tax mineral rights and mineral-bearing lands. The new amendment has therefore triggered a fresh debate over fiscal federalism and the balance between Union and state powers.

The Centre, however, argues that divergent and unpredictable state levies can increase mineral costs, discourage investment and make domestic resources less competitive. It says the amendment seeks greater taxation uniformity, policy certainty and mineral security.

Odisha Steel and Mines Minister B B Jena defended the BJP governments, saying mining reforms under Prime Minister Narendra Modi have generated substantial revenue for Odisha and accusing the Congress and BJD of misleading the public.

The BJD, although outside the INDIA bloc, has also opposed the law, accusing the Centre of weakening Odisha’s rights and federal autonomy. Meanwhile, INDIA bloc parties have announced a statewide Resistance Day on August 25 and a September 9 convention, where they may decide on an economic blockade and possible Odisha bandh.

The confrontation now extends beyond party politics to a larger question: who should control the economic benefits of Odisha’s mineral wealth - the state, the Centre, mining companies or the communities living in mineral-rich regions? With mining revenue central to Odisha’s finances, the MMDR Act is poised to remain a major political and federalism issue in the state.