BHUBANESWAR: The State Cabinet on Tuesday resolved to move the Centre to levy mineral resource rent tax on iron ore to be charged at 50 per cent of the surplus rent. It was decided that the tax so collected should come to the State Government for improving social and physical infrastructure, strengthen welfare measures besides improving the livelihood of the people of the State. The meeting was presided over by Chief Minister Naveen Patnaik. As far as other minerals like bauxite, chromite, manganese and coal, it was decided that the Steel and Mines Department should examine the potential of revenue from such minerals for the benefit of the people. The Cabinet felt that the State Government being the owner of the minerals should have the right to get a fair share of the profits from the extraction of ores for the benefit of the poor in mineral-rich states. The insatiable demand for iron ore in the export market in the last few years has resulted in the mineral becoming a profitable commodity with returns being far in excess of economically acceptable rates. Official sources said the National Mineral Development Corporation (NMDC), which sold 17.46 million tonne iron ore in 2001-02, made a profit of ` 343.32 crore. Profit of the corporation, which sold 26 million tonne iron ore in 2010-11, jumped to ` 9,727 crore. Naveen had written several letters to Prime Minister Manmohan Singh in this regard. He also raised the issue in the National Development Council (NDC) meeting in Delhi on October 22 and National Integration Council (NIC) meeting there on September 10. Making a statement in the Assembly on Tuesday, the Chief Minister said the State Government cannot be mere bystander to exploitation of public resources for the benefit of a few. It is, therefore, essential that a mineral resource rent tax should be levied which should give the State a lasting stake in the fabulous profits. “But I cannot understand why the Centre is not responding to repeated requests from the State,” Naveen said and asked, “Does the Government of India have a soft corner for private mine owners.” The Chief Minister suggested that the Congress members should go to Delhi and meet their leaders and demand imposition of this tax instead of shedding crocodile tears in the Assembly. But it may be possible that many Congress members may not get appointment to meet their bosses who are drowned in scams, he said.
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