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Here is an advantage for Odisha. Now, the State Government can charge a 10-per cent royalty on iron ore basing on the market value of the mineral. Instead of requesting the Centre to raise the rate of royalty, the State Government can now achieve the goal with all respect and legal standing.
The reason: A Supreme Court judgement in a case between the Government of Karnataka and Obulapuram Mining Company Private Limited and others, has come as a shot in arm for the Odisha Government.
The Supreme Court has already allowed the State of Karnataka to charge royalty on the basis of 10 per cent of the current market value of iron ore. The court's verdict in favour of Karnataka came on August 5, 2011.
"Today, the State of Karnataka has been charging royalty at the rate of 10 per cent of rates as determined by the IBM (Indian Bureau of Mines) at the pithead. The differential between that rate and the market rate will be accounted by the State of Karnataka," the Supreme Court judgement said. "We make it clear that the differential rate will be deployed for rehabilitation purpose of the area concerned," the order said.
As the apex court has allowed Karnataka to charge royalty on the basis of 10 per cent of the market rate, the Odisha Government should take advantage of the situation, pointed out a legal expert, adding that the State administration should rush to the Supreme Court seeking a similar order as the mines in Joda and Barbil in Keonjhar district and Koira in Sundargarh aere not different from that of Karnataka's Bellary.
Like Bellary, the mining situation in Joda, Barbil and Koira is no better. In all the three places, there have been mindless mining activities resulting in large-scale damages to the local ecology. And all the three places hit headlines everyday for illegal mining activities and theft of minerals.
There is no point as to why the Odisha Government would also not get equal rate of royalty as Karnataka has, observers maintain. However, the State Government would have to approach the apex court for such a favourable order so that it can levy a 10-per cent royalty of the market value of minerals. And the additional funds can be utilised for protection of environment of Keonjhar and Sundargarh districts, feel environmentalists.
The reason: A Supreme Court judgement in a case between the Government of Karnataka and Obulapuram Mining Company Private Limited and others, has come as a shot in arm for the Odisha Government.
The Supreme Court has already allowed the State of Karnataka to charge royalty on the basis of 10 per cent of the current market value of iron ore. The court's verdict in favour of Karnataka came on August 5, 2011.
"Today, the State of Karnataka has been charging royalty at the rate of 10 per cent of rates as determined by the IBM (Indian Bureau of Mines) at the pithead. The differential between that rate and the market rate will be accounted by the State of Karnataka," the Supreme Court judgement said. "We make it clear that the differential rate will be deployed for rehabilitation purpose of the area concerned," the order said.
As the apex court has allowed Karnataka to charge royalty on the basis of 10 per cent of the market rate, the Odisha Government should take advantage of the situation, pointed out a legal expert, adding that the State administration should rush to the Supreme Court seeking a similar order as the mines in Joda and Barbil in Keonjhar district and Koira in Sundargarh aere not different from that of Karnataka's Bellary.
Like Bellary, the mining situation in Joda, Barbil and Koira is no better. In all the three places, there have been mindless mining activities resulting in large-scale damages to the local ecology. And all the three places hit headlines everyday for illegal mining activities and theft of minerals.
There is no point as to why the Odisha Government would also not get equal rate of royalty as Karnataka has, observers maintain. However, the State Government would have to approach the apex court for such a favourable order so that it can levy a 10-per cent royalty of the market value of minerals. And the additional funds can be utilised for protection of environment of Keonjhar and Sundargarh districts, feel environmentalists.
