Odisha losing Rs 5 cr per day

The Odisha government is losing about Rs 5 crore as mining revenue every day because of non-revision of the royalty rates by the central government.

Though a study group, constituted by the Centre to revise the royalty rates, has submitted its report in June 2013, the same is not being implemented, said Rajni Kant Singh, minister of state (independent charge) for steel and mines department.

"Had the Union government accepted the recommendation of the study group, the state would have received additional Rs 5 crore revenue per day considering the current rate of mineral production," Singh said in a written reply to state assembly. As per the rules of Mines and Minerals Development and Regulation (MMDR) Act, the central government must revise the mineral royalty rates every three year. The last revision was made in 2009, when royalty on iron ore was enhanced to 10 per cent of total sale price, instead of a fixed amount.

The due date for revising the rates was on 13 August, 2012. However, the study group, appointed for revision of mineral royalties, gave its recommendation only in June 2013. "The Centre is still sitting over the proposals. It has not intimated us yet about the cause of delay so far," he added.

Mineral revenue is considered a major source of income of the state government. Recent data showed that, during April-September period, mining revenue, which contributes a whopping 75-80 per cent to the state's non-tax revenue basket, dropped 4.64 per cent to Rs 2,582.46 crore as against Rs 2,708.15 crore in the corresponding period of last fiscal. Odisha possesses 35 per cent iron ore deposits, half of bauxite reserve and a quarter of coal resources of India. The state has so far leased out 600 mines in total for operation, out of which 472 have been shut down due to various regulatory issues and lack of statutory clearances while 128 are currently in operation.