Orissa assembly session begins amid noisy scenes

Bhandare also lauded the state government''s fiscal management plan which had ensured improvement in the fiscalcondition during last few years. "Our dependence on borrowinghas consequently declined," Bhadare said.

Terming the left wing extremism as a major cause ofconcern, the Governor said due to effective deployment offorces and sustained police action, naxal violence hassignificantly dropped in the state during 2010.

There were 87 deaths and 130 naxal related incidentsin the state during 2010, he said adding that the governmenthad taken steps to fill up vacant posts in the police.

Stating that royalty from minerals as the secondhighest source of the state''s revenue, the Governor saidthat the mining revenue is likely to touch 3,000 crore by endof the fiscal.

He, however, pointed out that though royalty onnon-coal minerals has changed from tonnage to ad-valoremregime, the upward revision of royalty for coal was long overdue. "The government of India is yet to revise it inspite ofrepeated requests from the state government," the governorsaid.

Bhandare also outlined several measures taken by thestate government to curb illegal mining. Concerned over thedevelopment of the mines area, he said that the stategovernment haddecided to constitute a special developmentfund. "It is proposed to to utlise 5 per cent of the miningrevenue colelcted from an area for the development of theimpacted area through the fund," he said.

Agitating Congress members who returned to the houseafter Bhandare''s speech again boycotted the governmentchief whip R N Pani''s motion of thanks on governor''s address.