Bhubaneswar: Expressing disappointment over Union Mine ministry’s rejection of his proposal of imposing tax on mine owners, Chief Minister Naveen Patnaik has urged the Centre to immediately levy Mineral Resource Rent Tax (MRRT) through ordinance.
Mr. Patnaik in a letter to Union Mine Minister Dinsha Patel, argued that mine owners were making super normal profit by trading iron ore without making any sizable investment.
It was last on January 25, Patnaik had reierated his demand to levy the tax. But his proposal was rejected by the mines ministry on the grounds that the cost of production of iron ore and transportation had gone up. The ministry, however, said that the price of iron ore had increased during the past five years in the international market.
Patnaik had pleaded that the people living in mine area should also get benefit from the profit.
Quoting the audited financial report of the National Mineral Development Corporation (NMDC) for the last 10 years, he said in his letter “while the sale of iron ore increased from 17.46 million tonnes in 2001-02 to 26.32 million tonnes in 2011-12, registering a growth of 50.74 per cent, the average income from sale of iron ore leaped from Rs 625.99 million tonnes to a whopping Rs 4287.74 mt, an increase of 585 per cent, during the same period which was due to windfall gains owing to increase in the price in global market and not due to investment by the companies