Naveen seeks change in Centre’s policy

Chief Minister Naveen Patnaik today demanded that a change in the Centre’s policy on royalties of mineral resources. In a letter to Prime Minister Manmohan Singh, Naveen said that even though 24 percent of iron ore reserves are in Orissa, the State does not get the expected revenue from it due to Centre’s policy. Demanding that royalty on iron ore should be fixed on ad valorem basis, Naveen requested the Prime Minister to take into account the recommendations of the group of secretaries on the matter.

The group of secretaries on iron ore had recommended that royalty on the mineral should be fixed on ad valorem basis. Naveen alleged that the existing policy of the Centre only favoured the mine owners and businessmen.

While the local people near the mines are facing problems like displacement and pollution, the State Government is also not getting adequate revenue from the royalty due to Centre’s faulty policy, he said.

Fixing of iron ore royalty rate on ad valorem basis was kept on hold because of the growing inflation. Now that inflation is under control, recommendation of the group of secretaries should be implemented immediately, he added.

The Chief Minister has also demanded that information published by Indian Bureau of Mines (IBM) on iron ore sale should be changed suitably so that mineral rich states can benefit after the revision of royalty on ad valorem basis.

He said that a policy should be formulated so that mineral bearing states can get their due share from export revenue of iron and chromite ores.