Bhubaneswar: The Centre has rejected the State Government’s demand for the introduction of a mineral resource rent tax (MRRT) on profits made by the mine owners and has said it needs further study.

Union Minister of State for Mines Dinsha Patel told in a letter to Chief Minister Naveen Patnaik that due to increased global sea trade and increase in metal production, the demand for iron ore has increased over the years. At the same time, it cannot be denied that incidental costs like transportation and handling charges have also increased during the time.

Patel has, however, replied that the Centre has said it needs to be measured properly whether there is super profit from iron ore trade in mineral-rich states like Odisha having very poor infrastructure.

Referring to the Mines and Mineral Development and Regulation (MMDR) Bill, 2011, tabled in the Winter Session of Parliament, the Minister said under the proposed Bill, every mine owner will have to deposit an equal amount of royalty paid to the Government to district mineral foundations to be utilised for the development of mines 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.

Moreover, the Chief Minister had written two letters, in August and November, to the Prime Minister with the proposal to impose MRRT.