Naveen accuses Centre of siding with mining lobby

Chief minister Naveen Patnaik has hit back at the Centre over the latter’s reluctance to accept his plea for imposition of Mineral Resource Rent Tax (MMRT) on the super normal profits earned by the miners and termed the Union minister of state for mines Dinsha Patel’s response in this regard as “nothing but the version of the mining lobby”.

Patel, in a recent letter to the state government, had said, "That the iron ore mining industry is earning profits cannot be disputed but whether it is earning super profit to the detriment of the state government is an issue that needs closer look, especially in Orissa where mining infrastructure is poor”.

“The reply of the minister is nothing but the version of the mining lobby. It is dilatory tactic to defer the collection of additional tax from the super rich miners on the pretext of royalty revision and amendment of the Mines and Minerals (Development & Regulation) act which will take a long time,” read an official release from the chief minister’s office.

The state government stated that it has enough data to show that the miners are making abnormally high profits.

Patnaik also questioned the seriousness of the Central government for providing benefits to the people affected due to large scale mining.

“If the Government of India is serious about benefiting the people of the affected areas, it should immediately impose MRRT instead of buying time and helping the miners to make money everyday”, said the release.

Orissa, at regular intervals, has been demanding before the Centre for imposition of MRRT on windfall gains made by miners. Chief Minister in a letter to the Prime Minister Manmohan Singh, late last year, had requested for imposition of MRRT in the line of the Australian government and also submitted a memorandum to this effect during the latter’s visit to the state to inaugurate the 99th Indian Science Congress recently. Meanwhile, the state cabinet in December has approved the imposition of said tax.