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This is an archive article published on June 25, 2008

Don’t harm states to fight inflation: Naveen tells PM

Strongly opposing the Centre’s reported move to put on hold the mineral royalty change in view of skyrocketing inflation...

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Strongly opposing the Centre’s reported move to put on hold the mineral royalty change in view of skyrocketing inflation, Orissa government today asked Prime Minister Manmohan Singh to effect necessary changes in the mineral royalty regime without further delay.

“I am a little disheartened to note from newspaper reports that mineral royalty change has been put on hold by union government apprehending negative impact on inflation,” Orissa chief minister Naveen Patnaik wrote in a letter to the Prime Minister, sources said.

Patnaik said the Centre should address inflation through appropriate measures and not by way of “depriving” the states of legitimate returns on their mineral resources.

Patnaik said there was an urgent need for shifting over specific to ad valorem regime of royalty. “The mineral-bearing states should get the benefit of a buoyant market for minerals,” the chief minister said, adding only mine owners and traders were garnering all benefits from hike in the price in international market.

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