Bhubaneswar | Feb 17, 2015: Making its reservations clear on the mining ordinance, Orissa has said it does not want 50 year term iron ore mining lease and instead wants it to be limited to 30 years.
In a letter to Union Mines Secretary Anup Pujari Monday, state’s Steel and Mines Secretary Rajkumar Sharma said as iron ore is a volatile market it will not be practical for intending bidders to make offers in the competitive bidding based on market forecast over a long period of 50 years. “We are deeply disappointed and distressed to note that the government of India has inserted an amended section 8 and a new section 8A in the MMDR Act to extend the validity of all existing leases, including those under second and subsequent renewal,” said Sharma in his letter.
Orissa said sections 8A(3), 8A(5) and 8A(6) should be deleted as these provisions were not in the draft proposal circulated for consultation with the state governments and have been incorporated in the final ordinance without consulting the states. The largesse of further profit making by the lessees who have already enjoyed supernormal profits should not be extended, it said.
Stressing that state government are the owners of the mineral resources, Orissa wants insertion of a provision in MMDR Act to empower state governments to levy cess on minerals to be used for mineral exploitation or for development for tribals areas subject to a reasonable limit of 10 per cent of royalty.
It also demanded deletion of Section 30(B) which authorises the Central government to pass orders on the matters not disposed by the state government within prescribed time limit.
(Source: indianexpress.com/)