Odisha should soften stand on stamp duty order: SAIL

SAIL is currently operating three captive iron ore mines in the state

Reacting to the latest order of the Odisha government on not allowing operation of mines under deemed extension without payment of stamp duty, Steel Authority of India Ltd (SAIL) today said, the government should take a liberal view on the matter.

“SAIL is studying the financial implications of the stamp duty order of the Odisha government. The stamp duty rates vary from state to state. Our company would request the state government to allow the mines to continue operations under deemed extension. We expect the state to be liberal on this issue,” said SAIL chairman C S Verma after meeting Chief Minister Naveen Patnaik.

SAIL is operating three captive iron ore mines in the state- Bolani, Barsuan and Kalta under deemed extension of the lease period

The latest order of the steel & mines department urging district collectors to collect stamp duty by July 9 has sparked a stand-off between the miners and the government. Private lessees and state owned firms like SAIL had Mahanadi Coalfields Ltd (MCL) have filed petitions in the Odisha High Court, seeking annulment of the Indian Stamp (Odisha Amendment) Act - 2013.

As per the revised Act, miners have to pay stamp duty even if their leases are not renewed. The stamp duty is equivalent to 15 per cent of the royalty fees.

Meanwhile, SAIL expects to start operations of its biggest blast furnace (4,016 cubic metres) at its unit - Rourkela Steel Plant (RSP) - within 10 days. The blast furnace was to be commissioned as per RSP's modernisation cum expansion plan.

The maharatna PSU had committed Rs 16,000 crore investment to scale up RSP's hot metal and steel output from the existing two million tonne per annum (mtpa) to five mtpa.