Cong MP Ulaka urges PM to safeguard Odisha’s mining tax rights | Bhubaneswar News


Cong MP Ulaka urges PM to safeguard Odisha’s mining tax rights

Koraput: Congress MP from Koraput Saptagiri Sankar Ulaka on Monday wrote to Prime Minister Narendra Modi expressing serious concern over the Mines and Minerals (Development and Regulation) Amendment Act, 2026, particularly Section 9D, which he said could restrict the constitutional taxation powers of mineral-rich states like Odisha.In his four-page letter, Ulaka said the debate over whether Odisha would continue receiving nearly 90% of mining revenues missed the larger issue of the states fiscal autonomy. The real question is not merely how much revenue Odisha receives today, but who would possess the constitutional authority to determine and raise revenue from Odisha’s mineral wealth tomorrow, he wrote.Section 9D bars a state from imposing tax, cess or other levy on mineral rights or mineral-bearing land except under conditions prescribed by the Centre. Ulaka said royalty, auction premiums and District Mineral Foundation contributions could not substitute the independent taxation powers vested in states under the Constitution.Referring to the Supreme Courts 2024 nine-judge Constitution Bench ruling in Mineral Area Development Authority versus Steel Authority of India, Ulaka said the court had recognised states power to tax mineral rights and mineral-bearing lands. He argued that Section 9D substantially narrows the taxation space available to states after the apex court’s ruling.Odisha may continue receiving royalty, auction premiums and DMF contributions while losing the practical freedom to design future taxes or levies according to its developmental, environmental and social requirements, Ulaka said.The MP also raised concerns over illegal mining and DMF utilisation in Odisha, citing the Justice M B Shah Commission’s estimate of around Rs 59,200 crore in illegal iron and manganese ore extraction and CAG findings on DMF spending in non-mining-affected villages of Keonjhar and Sundargarh. He also sought greater protection for tribal communities through compliance with PESA, the Forest Rights Act and LARR Act.BJP leader Goutam Samantaray, rejected Ulaka’s contention. The amendment does not take away Odisha’s legitimate mining revenues. Royalty, auction premiums and DMF funds would continue to flow to the state as before. It prevents multiple and arbitrary levies that hurt industry and end-users, Samantaray said.He said Odisha’s long-term interests would be better served by uniformity and predictability in the mineral sector.



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