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regular-article-logo Friday, 25 April 2025

Former minister prods Odisha chief minister Mohan Charan Majhi on mining taxation

Srikant Jena says: “Had you enforced the Supreme Court’s ruling on cess and taxes on minerals and mineral-bearing land, the state could have generated revenue to the tune of ₹1 lakh crore per annum. The money could have funded crucial social welfare initiatives. But the chief minister, while presenting the state budget, remained silent on the issue.”

Subhashish Mohanty Published 21.02.25, 05:35 AM
Mohan Charan Majhi

Mohan Charan Majhi File image

Senior Congress leader and former Union minister Srikant Jena has written to Odisha chief minister Mohan Charan Majhi questioning why the state government has been silent on the issue of the Supreme Court’s order regarding mining taxation in the state.

Jena said: “Had you enforced the Supreme Court’s ruling on cess and taxes on minerals and mineral-bearing land, the state could have generated revenue to the tune of 1 lakh crore per annum. The money could have funded crucial social welfare initiatives. But the chief minister, while presenting the state budget, remained silent on
the issue.”

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In his letter to Majhi, the veteran leader said: “The Supreme Court’s judgment dated July 25, 2024, and August 14, 2024, enables Odisha to generate more than 1 lakh crore annually. Apart from that, the state will get an additional 1.5 lakh crore as previous dues from mining operators. I am surprised and unable to understand why the government is not acting on the judgment of the Supreme Court?”

Jena also raised the issue of the Odisha government’s long-term policy that allegedly favours selected mining operators. “Another major issue is the state government’s long-term linkage policy, which favours selected mining operators by significantly compromising market prices,” he said.

He also questioned how bauxite is being sold at 465 per tonne to the private players while the global rate is 6,000–7,000 per tonne, incurring huge losses to the
state’s exchequer.

On Odisha government’s decision to auction 10 mineral blocks at the Centre’s behest, Jena said: “It will lead to significant revenue loss, especially given the recession in the metal market. Why is the state opting for an auction instead of allocating these mines to the OMC (Odisha Mining Corporation) for better revenue generation and resource management?”

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