BJD blames Congress for mining scam

The Congress party in the Centre is responsible for illegal mining across the country by not collecting windfall taxes on super profits earned by miners and by not curbing exports, said Pyari Mohan Mohapatra, senior leader and chief poll strategist of Biju Janata Dal.

“We had demanded for collection of royalty at 30 per cent on ad valorem basis way back in 2004-05, but they did not listen for a long period until they failed in Karnataka, Chhatishgarh and Jharkhand polls. After they realised that mineral rich states are not getting there share, they imposed 10 per cent royalty duty,” Mohapatra said while speaking at the 14th foundation day celebration of BJD.

The Centre imposed ad valorem duty on iron ore at 10 per cent of selling price couple of years back, replacing the decades-old fixed rate royalty. The proposed Mines and Mineral (Development and Regulation) Act, 2010 has provisions to hike the mining royalty to 20 per cent.

“The royalty rate is being proposed to be raised (to 20 per cent from existing 10 percent) but we want the Government of India to impose windfall tax of 50 per cent on the super profits earned by iron ore miners,” he said.

The Orissa government has demanded that the Central government should introduce mineral resource rent tax in line with Australia and tax super profits of iron ore miners at 50 per cent to curb illegal mining. The government has also demanded ban on mineral exports.

In absence of heavy taxation, the exports of minerals went up sharply and led to rampant illegal mining across the country, said Mohapatra, a Rajya Sabha MP from the state.