The Orissa government's demands for revision of coal royalty suffered a jolt on Saturday as Sriprakash Jaiswal ,Union minister of state for coal rejected it.
Pouring cold water over the Naveen Patnaik government's demands for hike in coal royalty, Jaiswal asserted that there was "no need" to revise coal royalty. "There is no meaning of revision. Whatever coal royalty is being given is more than sufficient," he told journalists after holding a meeting with the chief minister here. "We are worried about how production of coal could go up. We want to double the production. Accordingly, the royalty would also increase (pro rata)," he added.
Naveen, on his part, pointed out that some years ago the Centre had delayed revision of coal royalty by two years and the state has been demanding compensation for that. "The matter will be taken up with the finance commission, which is the appropriate forum for this," he added.
Official sources said the coal royalty, going by the Sarkaria Commission, is supposed to be enhanced every three years, but the Centre had ignored the states repeated pleas and delayed the previous raise (which was done in 2007) by around two years. Ever since the state government has been seeking compensation for the losses incurred by it, but the Centre, despite recommendations from the Eleventh and Twelfth Finance Commissions, has turned a deaf ear.
Jaiswal further took up different issues pertaining to the Mahanadi Coalfields Limited, a Coal India subsidiary, like forest diversion proposals, environment clearances, land acquisition and rehabilitation and law and order. Jaiswal informed that the CM had assured him that forest diversion and environment clearance issues would be sorted out within six months. Senior MCL officials would discuss these issues with the chief secretary and resolve the problems, he said. The CM further asked the Union government to ensure lot more trees are planted in coal-rich Talcher area to counter pollution.
Meanwhile, the Opposition Congress also demanded timely revision of coal and non-coal minerals. A Congress delegation, which handed over a memorandum to Jaiswal, said: "Though a time limit of three years has been determined for revision of royalty in consonance with recommendations of both Sarkaria and 11th Finance Commission, we witness perpetual irregularity causing immense loss to Orissa."
Congress also pressed for rationalization of the royalty regime by changing over to full ad-valorem basis or aligning with international best prices and suitable compensation (to state) in case of delay as recommended by the 11th Finance Commission.
Pouring cold water over the Naveen Patnaik government's demands for hike in coal royalty, Jaiswal asserted that there was "no need" to revise coal royalty. "There is no meaning of revision. Whatever coal royalty is being given is more than sufficient," he told journalists after holding a meeting with the chief minister here. "We are worried about how production of coal could go up. We want to double the production. Accordingly, the royalty would also increase (pro rata)," he added.
Naveen, on his part, pointed out that some years ago the Centre had delayed revision of coal royalty by two years and the state has been demanding compensation for that. "The matter will be taken up with the finance commission, which is the appropriate forum for this," he added.
Official sources said the coal royalty, going by the Sarkaria Commission, is supposed to be enhanced every three years, but the Centre had ignored the states repeated pleas and delayed the previous raise (which was done in 2007) by around two years. Ever since the state government has been seeking compensation for the losses incurred by it, but the Centre, despite recommendations from the Eleventh and Twelfth Finance Commissions, has turned a deaf ear.
Jaiswal further took up different issues pertaining to the Mahanadi Coalfields Limited, a Coal India subsidiary, like forest diversion proposals, environment clearances, land acquisition and rehabilitation and law and order. Jaiswal informed that the CM had assured him that forest diversion and environment clearance issues would be sorted out within six months. Senior MCL officials would discuss these issues with the chief secretary and resolve the problems, he said. The CM further asked the Union government to ensure lot more trees are planted in coal-rich Talcher area to counter pollution.
Meanwhile, the Opposition Congress also demanded timely revision of coal and non-coal minerals. A Congress delegation, which handed over a memorandum to Jaiswal, said: "Though a time limit of three years has been determined for revision of royalty in consonance with recommendations of both Sarkaria and 11th Finance Commission, we witness perpetual irregularity causing immense loss to Orissa."
Congress also pressed for rationalization of the royalty regime by changing over to full ad-valorem basis or aligning with international best prices and suitable compensation (to state) in case of delay as recommended by the 11th Finance Commission.
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