Naveen opposes FDI in mining;calls for rational royalty regime

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Bhubaneswar, Jul 18 (UNI) Orissa Chief Minister Naveen Patnaik today opposed the FDI in mining saying that such approach if followed to its logical conclusion, it would put the domestic industries at a serious disadvantage.

Addressing the CEO's forum at a seminar on ''Mineral Junction;The Future Ahead,'' organised by the Orissa chapter of the CII here, Mr Patnaik said Orissa has registered its strong reservation against the basic spirit of the National Mineral Policy 2008 based on the Hoda Committee report.

Stating that the NMP 2008 had not taken into the consideration of the true need of the nation, the Chief Minister said the policy believed that the state of art technology in mining could be available only if FDI was allowed in mining activity with no holds barred.

But this belief had led to the concepts like '' stand along mining activity, security tenure, seamless transition and protect the long term interest of the mineral export companies, he remarked.

Mr Patnaik said Orissa along with other states have been pleading for a more rational and fair system of royalty regime by shifting from specific to ad valorem basis.

He said a fair system of royalty regime would fetch Orissa approximately Rs 5000 crore annually which would enable the state to run many pro poor initiatives already initiated by the government.

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