States » EastPosted at: Oct 2 2026 8:00PM


Dharmendra Pradhan questions Naveen over bauxite pricing, alleged favour to private company

Bhubaneswar, Oct 2 (UNI) Former union Education Minister and Sambalpur MP Dharmendra Pradhan on Friday accused the Biju Janata Dal (BJD) and its president and Leader of Opposition Naveen Patnaik of misleading people over the MMDR Act and supply of natural resources in Odisha.
In a series of posts on X, Pradhan referred to the Orissa High Court's October 1 judgment dismissing a plea by Vedanta Ltd seeking enforcement of a 2004 agreement for supply of 150 million tonnes of bauxite from the Odisha Mining Corporation (OMC) at the earlier pricing mechanism.
The High Court held that the old agreements could not be enforced after subsequent changes in the statutory framework governing mining and natural resources.
Pradhan alleged that the previous BJD government had created a pathway for extending undue benefits to a particular private company. He claimed that the High Court's judgment had brought the issue into focus.
According to Pradhan, amendments to the MMDR framework and Rule 45 of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, resulted in a conversion factor being applied while determining the average sale price of bauxite.
He claimed that this increased the price of bauxite from Rs 750 per tonne to Rs 1,707 per tonne and would have generated additional revenue for Odisha through royalty, the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET).
Pradhan alleged that then Chief Minister Naveen Patnaik had written separately to the Centre on February 1, 2020, seeking reduction of the conversion factor and implementation of a lower price sought by the private company.
He alleged that the requests were contrary to Odisha's interests and said the Centre had rejected them.
Pradhan questioned the rationale behind seeking reconsideration of a rule which, he claimed, was beneficial to the State. He also questioned whether the accumulation of around Rs 5,400 crore in dues against a particular private company over a long period was the result of an erroneous decision.
He sought to know the actual intention behind seeking a review of the pricing mechanism, asking in whose interest and for whose benefit such a step had been taken," the statement said.
Pradhan also alleged that Odisha had suffered substantial revenue loss while a private company was extended undue benefits and demanded that Patnaik come clean on the issue and stop making what he termed misleading statements.
The High Court, in its October 1 judgment, dismissed Vedanta's plea seeking to revive the earlier arrangement for supply of 150 million tonnes of bauxite.
The court held that promissory estoppel could not be used to compel the State to act contrary to statutory provisions governing natural resources. It also upheld the authorities' reliance on the statutory pricing mechanism under Section 17-A of the MMDR Act and Rule 45 of the 2016 Rules.
Vedanta had argued that assurances contained in agreements dating back to 2003-2009 formed the basis for its investments in Odisha and entitled it to bauxite under the earlier pricing arrangement. The court, however, dismissed the petition and vacated interim orders.
Pradhan said Patnaik should acknowledge the facts and disclose the truth to the people of Odisha instead of, as he alleged, misleading them on the issue.
UNI DP
Tags: #Dharmendra Pradhan questions Naveen over bauxite pricing# alleged favour to private company
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