Centre snubs State over mineral rent tax

Garlan

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posted on 12 years ago — updated on 1 second ago

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BHUBANESWAR: Virtually rejecting the State Governments proposal for imposition of mineral resource rent tax (MRRT) on profits mad..

BHUBANESWAR: Virtually rejecting the State Government’s proposal for imposition of mineral resource rent tax (MRRT) on profits made by the mine owners, the Centre has said it needs further study.Replying to the letter of Chief Minister Naveen Patnaik to Prime Minister Manmohan Singh, the Centre has said it needs to be assessed properly whether there is super profit from iron ore trade in mineral-rich states like Odisha having very poor infrastructure.The MRRT is the latest demand of Naveen before the Centre. The BJD with its theme of Central negligence has decided to make it the next campaign issue in the panchayat polls. The State Cabinet had also passed a resolution last month requesting the Centre to bring a legislation to allow the State to impose MRRT on mine owners making super profits.In a letter to the Government, Union Minister of State for Mines Dinsha J Patel has said the study group constituted on royalty on dead rent, of which Odisha happens to be a member, is likely to consider the Government’s proposals.Referring to the Mines and Mineral Development and Regulation (MMDR) Bill, 2011, the Minister said under the proposed Bill, the mining lease holders will have to deposit an equal amount of royalty paid to the Government to district mineral foundations to be utilised for the development of mine areas and rehabilitation of displaced families. The ministry too has suggested several measures to the State Government which it said should be implemented for judicious utilisation of natural resources in larger public interest. The ministry feared that the development of the country would be badly hampered due to curtailment of mining activities and hence suggested that scientific study of mineral- rich areas and mining work is the need of the hour. If need be, the Minister suggested, the State Government could make a review and fresh assessment of all the mining lease holders.The Chief Minister had written two letters, in August and November, to the Prime Minister with the proposal to impose MRRT. Naveen had also submitted a memorandum to the Prime Minister on January 3 during his visit here to inaugurate the Indian Science Congress (ISC) raising the demand.