Bhubaneswar:After newly elected Rajya sabha MP Pointed out systematic loss of Revenue from Coal by Odisha government,
“The Government of India fixes the rate of Royalty on Coal and other major minerals in the state,The Government of India last revised the royalty on coal in april,2012 normally they have to revise these rates in every three years in that case it should have revised in april,2015. Odisha being a coal bearing state,there is lot of Environmental degradation because of extraction of Coal.We expect that Honourable CM has made a request to revise this particular rate of royalty on coal from 12 percent to 20 percent. This has not been done. Even though this has been placed before central GST Council. Instead it has been a clean energy cess has been imposed,as you know cess goes in undivisable pool,so the state government doesn’t get anything” said Rajya Sabha MP in Zero Hour in Upper House
The Fact Now accessed letter written by Odisha CM Naveen Pattnaik and Chief Secretary letter no:UM/40/2011/-97/CM Dated:18th May,2011 and 6322/CS Dated:10,August 2011 to Union Ministry of Mines,the copy of letter is with The Fact Now
On systemetic under reporting of sale value of Iron Ore by IBM(Indian Bureau of Mines) for which royalty is chargeable on ad valorem basis and State Government is suffering Huge loss of Revenue from Iron Ore
Not only coal, Odisha is losing heavily
on iron ore royalty also as pointed out by the CM and CS, Odisha long back.
They pointed out to the central govt that the under-reporting of sale
price by mine owners brings down Average Sale Price (ASP) published by IBM.
This ASP is the basis for calculating royalty by state government. If IBM
publish less ASP, the royalty is less. Even today, there is no check on the sale price reported by mine owners.
Regional office of IBM is sleeping on these fudged under-reported sale price
data, who are statutorily authorized under the MMDR Act to act upon.
State Government as a result losing heavily on daily basis. This is a
systematic loot of state government exchequer.
