Bhubaneswar: The state Congress has demanded a special session of Odisha Assembly over power of the states to levy royalty on extraction of minerals from their land as the Supreme Court has rejected the Centre’s review petition recently. Former Union minister and senior Congress leader Srikant Kumar Jena made several suggestions to the state government which include a special session of the Assembly, scrapping of Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004 and introduction of a fresh Bill in the larger interest of the state and its people.
In a letter, Jena said that the Supreme Court, in its landmark decision October 4, 2024, had rejected the Union government’s review petition upholding its judgements July 25, and August 14, 2024. The Supreme Court dismissed petitions seeking review of its 8:1 majority verdict upholding the power of the states to levy royalty on extraction of minerals from their lands and allowed them to tax the lands that comprise mines and quarries. The rulings of the SC allow mineral-bearing states to levy taxes and cess on minerals and mineral-bearing lands. This will undoubtedly bring much-needed economic relief to Odisha, which has long struggled with poverty and underdevelopment, Jena said.
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“In light of this, I call on the Odisha government to urgently act on the following suggestions including withdrawal of the petition on Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act 2004 pending in the Supreme Court challenging Orissa High Court ruling of 2005, scrapping the ORISED Act of 2004, the introduction of a new Bill in the Assembly and call the special session of Assembly for a detailed discussion as this will be a roadmap for the socio-economic development of the state,” he mentioned. The former Union minister said the new Bill can include several important provisions to better serve the interests of Odisha, which was completely ignored in the ORISED Act of 2004. He also said that a committee of experts should be formed to determine the market value of minerals. This committee must be chaired by a High Court judge, to ensure transparency and fairness in the valuation process. The committee will assess the true market value of minerals based on quality, demand and location advantages and ensure that Odisha receives a fair share of the wealth from its mineral resources. He also demanded the removal of the ceiling of 20 per cent tax on minerals as mentioned in ORISED Act 2004.
Jena also said that bauxite and chromite are in abundance in Odisha. The state should take the locational and qualitative advantage of these specifically located minerals and fix cess at 50 per cent of the market value.
Also, 50 per cent of the collected cess and taxes from the minerals and mineral-bearing lands should be spent in that respective area and in those particular districts. “I hope the Chief Minister will take note of my suggestions and act immediately in the best interest of the state and its people. Implementing these changes will ensure that Odisha fully benefits from its rich mineral resources,” the letter read.
