Orissa chief minister Naveen Patnaik (left) and chief secretary Bijay Patnaik at the National Development Council meeting in New Delhi on Saturday. Telegraph picture

Bhubaneswar, Oct. 22: Chief minister Naveen Patnaik today pushed for imposing a mineral resources rent tax on mining companies.

“This will help mineral-rich states such as Orissa raise much-needed resources for development,” said Naveen while speaking at a National Development Council meeting in New Delhi today.

Drawing attention of the council to the “supernormal profits” being enjoyed by the mining companies operating in the state, the chief minister said: “Profits of mining operators exceed even the approved annual plan size of Orissa.”

Blaming “flawed central policies, which have perpetuated low royalty rates and artificially low prices determined by Indian Bureau of Mines” for the current state of affairs, Naveen strongly advocated the imposition of mineral resources rent tax on mining companies, to be charged at 50 per cent of the surplus rent.

Last month, Naveen had suggested imposition of mineral resource tax on iron ore on the lines of Australia.

“The Australian government has announced that a mineral resource rent tax of 30 per cent on ore will be applicable from July 1, 2012. On the same lines, a mineral resources rent tax should be levied on iron ore to be charged at 50 per cent of the surplus rent and should accrue to the states,” he had said. Naveen has been repeatedly demanding revision of royalty on minerals and fixing of royalty according to the value of the product while highlighting the Centre’s alleged neglect of Orissa.

Stating coal mining and thermal power plants cost Orissa economically, environmentally and socially, the chief minister today reiterated his proposal to introduce suitable amendments to the Electricity Act, 2003, and National Thermal Power Policy for ensuring fair and equitable sharing of costs and benefits. He also demanded 25 per cent free thermal power share for host states such as Orissa as in case of hydro-power.

Opposing the proposed Indian Ports Bill, Naveen said: “It appears to constrain the powers of the states to develop their own ports and maritime infrastructure.”

Orissa, which has a 480km coastline, has identified 12 locations for development of minor ports on a public-private partnership mode.

Expressing his opposition to the Prevention of Communal and Targeted Violence Bill, objected by several states, the chief minister said that such tendencies, which erode autonomy of the states and weaken the federal structure, should be avoided.

Voicing his concerns over the growing Maoist menace, he suggested that the 12th Plan should focus on a multi-pronged strategy to address the situation. He demanded that the special initiative of Integrated Action Plan should continue with increased funding and cover more Naxal-affected tribal/backward districts of the state during the 12th Plan.

Naveen also pressed for a special category status to Orissa claiming that the state satisfied all the criteria except for an international boundary, which should not be a limiting factor.

The National Development Council today set 9 per cent growth target for the 12th Plan despite slowing economy amidst concerns of double dip global recession.

Prime Minister Manmohan Singh, who presided over the meeting, said: “...current slowdown is a matter of concern but it should be seen as a short-term phenomenon.”

“We must guard against the mood of negativism that seems to have gripped the country,” he added.

Finance minister Pranab Mukherjee urged chief ministers to shun populism to help country move on the path of reforms.

“As politicians, we like to win elections. But our own election victory must never take precedence over India’s victory. I say this because there are several important reforms which need legislative action,” Mukherjee said.

He listed the pending reforms which include introduction of Goods and Services Tax and the Direct Taxes Code.