States demand more royalities in National Mineral Policy

New Delhi, Aug 6 (UNI) The differences between the Centre and states over the Draft National Mineral Policy came under sharp focus today with Chief Ministers of five mineral rich states demanding more royalty on minerals, setting up of industries in these states and value addition.

The Group of Ministers led by Home Minister Shivraj Patil, today held a meeting in which Minister for Mines Sis Ram Ola, Jharkhand Chief Minister Madhu Koda, Chhattisgarh CM Raman Singh, Rajasthan CM Vasundhara Raje, Karnataka CM H D Kumaraswamy and Orissa CM Navin Patnaik participated.

The Chief Ministers made their suggestions and recommendations for the draft National Mineral Policy which would be presented before Union Cabinet and after its approval put before Parliament.

However, sceptical about the Centre's attitude, they wanted that the policy, before being presented to the Cabinet, should be sent to the mineral rich states for their approval so that they could know that their concerns and suggestions have been incorporated into it.

The Chief Ministers have decided to write a letter to Prime Minister Manmohan Singh in this regard. They would urge him that the policy before clearance should be sent to these states as had been the practice in the past so as to ensure that mineral resources of these states could be used for their development.

To clear the apprehensions of these states, Mr Ola said the Centre wanted to clarify that it had never done anything which was detrimental to the rights and interest of the states. He said till now there have been three-four rounds of consultations with the states on the issues and their suggestions and recommendations have been noted.

He said the draft policy would be sent to the Cabinet for clearance first and after that it would be placed before Parliament.

Mr Ola clarified that the decision on states' demand for ban on export of iron ore would be reviewed only after five years, adding that there has been no hike in excise duty on minerals.

However, Mr Raman Singh said it had been a tradition that the draft policy was circulated among the concerned states so that they could know whether their suggestions have been taken into account or not.

The states are demanding value addition within states, their right to stop trading be retained and tax at ad valoram. Pointing out that the royalty on iron ore was negligible, he said while the National Mineral Development Council earns Rs 3000 crore from iron ore, the states gets just a fraction of the amount.

He also demanded a ban on export of iron ore as it was detrimental to the national interest. Moreover, industries should be set up in states producing minerals as it would be economical and give employment to the local people that would go a long way in reducing problems of naxalism.

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