Odisha seeks funds for National Waterway-5 in Union Budget

Demands abolition of ceiling on professional tax

Realising the importance of the National Waterway-5 that would connect Paradeep and Dhamra ports with the steel and coal hinterlands at Kalinganagar and Talcher, the Odisha government has sought Budgetary allocation for the project.

"The National Waterway-5 will help reduce vehicular traffic by road and its negative impact on the environment, save fuel and energy consumption. Government of India may provide funds for the project in Union Budget for 2014-15," state finance minister Pradip Amat stated in a pre-Budget note submitted to the Union finance ministry.

Amat has also called for doing away with the upper ceiling on professional tax.

"As per Article 276 of the Constitution of India, the upper ceiling for profession tax is kept at Rs 2,500 per annum. This has not been revised in the last 24 years. We would, therefore urge the Government of India to do away with the upper ceiling and allow the states to levy professional tax on progressive basis," he said.

With Odisha's coastline vulnerable to natural disasters, the state government has asked for a separate scheme providing support to strengthen the existing power infrastructure along the coast line within a distance of 50-60 km.

Worried over losses incurred due to phasing out of central sales tax (CST), the state government has reiterated its demand for full compensation or restoration of the CST rate to four per cent till implementation of the Goods & Service Tax (GST).

"The Union government had been compensating the state government towards CST loss till 2009-10. For 2010- 11, the state has been partially compensated (against the loss assessment of Rs 664.39 crore, compensation of Rs 256.17 crore only was given.) But since 2011-12, no compensation has been given to the state," Amat rued.

On non-revision of mineral royalty rates due since August 2012, the state government complained it is losing Rs 5 crore every day and suggested that the royalty rate be expeditiously revised to 15 per cent from 10 per cent now.

In the pre-Budget note, the state government has yet again revisited its demand for free power. "There is a strong case for the demand of free power by the Odisha to the tune of 25 per cent with the imposition of cess on coal so mined and power generated in the state. A study commissioned by the Planning Commission shows that the negative externalities far outweigh these compensation."

On the Restructured Accelerated Power Development and Reform Programme (R-APDRP), the state government has insisted that the scheme needs to be restructured further to cover urban locations and industrial clusters with a population of 10,000 or a power demand of 5 MVA and towns of religious and tourist importance with a population of 5,000.

The state government has also urged the Government of India to declare a special package for restoration of the infrastructure damaged by the severe cyclonic storm Phailin.

The state government had submitted two memoranda to the Government of India requesting for release of Rs 4,242.41 crore and Rs 1,590.09 crore for relief, repair and restoration of Phailin affected areas and flood affected areas. While an advanced relief of Rs 1,000 crore was announced for the state, so far, Rs 750 crore has been released from the National Disaster Response Fund (NDRF).

Pointing to the corpus fund of over Rs 7,000 crore lying idle with the Power System Development Fund, the Odisha government has suggested that necessary guidelines may be framed for utilisation of the fund towards transmission system improvement so as to provide quality and reliable power.