Post News Network
Bhubaneswar, July 5: Chief Minister Naveen Patnaik Tuesday sought Prime Minister Narendra Modi’s intervention to ensure sharing of benefits of coal mining with coal bearing states in a fair manner.
“At least 60 per cent of the proceeds of the Clean Environment Cess on coal should be shared with coal-bearing states through an appropriate sharing mechanism,” Patnaik wrote to Modi.
The rate of royalty on coal, fixed at 14 per cent ad valorem, has not been revised for more than four years though the ministry of coal has constituted a study group to consider revision of rates, he said.
“While the rate of royalty has remained unrevised, the central government has enhanced the levy of clean Environment Cess to `400 per tonne in the Union budget 2016-17,” Patnaik said.
This cess is not shared with coal-bearing states, the Chief Minister said.
“I have earlier suggested that the cess should be renamed Environment and Rehabilitation Cess and at least 60 per cent of such funds should be shared with coal-bearing states to deal with negative externalities,” he said.
“The central government has also collected additional levy at `295 per tonne from the prior allocation of schedule II coal mines, which should be transferred to the state government,” Patnaik wrote.
“The royalty on coal should be appropriately increased commensurate to the cess to ensure sharing of benefits of coal mining with the states in a fair manner,” he said.
The Chief Minister also said that Orissa is not able to reap dividends of the contribution it makes towards the district mineral foundations (DMFs).
“The contribution to DMFs for coal has been made payable only from October 20, 2015, and not from January 12, 2015, as in the case of non-coal minerals has deprived the coal bearing states from realising the full benefit of DMF contribution allowed by the MMDR Amendment Act 2015 enforced with effect from January 2015,” he said.
“The anomaly needs to be rectified in the interest of the persons affected by coal mining,” Patnaik asserted.
The Chief Minister emphasised that coal bearing states which “contribute to the country’s requirement of power and power-intensive industrial sector” have to face the adverse effects of mining such as displacement of people, reduction in forest area, greater risk of environmental pollution and strain on water resources and infrastructure.
“Therefore, the coal-bearing states have reasonable expectations of adequate revenue contribution from the coal and mining sector,” he said.
