Orissa’s objections to the Hoda committee recommendations on national mines policy
Mining royalty, RESOURCE MOBILIZATION & BUDGETS July 13th. 2007, 5:47pmFollowing are some of the objections raised by CM Naveen Patnaik on the Hoda committee recommendations on national mines policy. These are excerpts from a Statesman article.
- The recommendations of the committee treat the nation as a unit instead of the state, as far as value-addition is concerned. This means that ore from Orissa can go to any other part of the country to feed the industries of that particular state.
If this is the case, what would happen to the jobs and the revenue that ought to have developed in Orissa, and why would a Posco or a Mittal come to Orissa to set up industries, the CM remarked.
- The Hoda Committee has also recommended that the export of ore should be freely allowed, at least for the next 10 years. This is again contrary to the principle that the export of ore should be phased out. Moreover, the export duty goes to the coffers of the centre and the royalty earned by the state is a pittance, Mr Patnaik observed.
- It seeks to abolish the provision, which empowers the state to recommend the cases of applicants who want to set up industries, without sticking to the first come first serve principle. The Centre has to be vested with powers to allot the mines to anybody, without value additional within the state as is the policy in Orissa now. The state governments are the custodians of the minerals located within their boundary and therefore any attempt to take away this right by the centre is unconstitutional, the CM charged.
- Another objectionable recommendation is that there should be seamless transition from reconnaissance permit to prospecting licence and further to the grant of mining lease.