Unwilling to budge from its stand,Orissa government has now cited the observation of Accountant General on levy of royalty to bolster its case on levying royalty for minerals extracted within the states boundaries.
In July this year,the Union mines ministry had objected to Orissa levying royalty on higher value of Calibrated Lump Ore or the processed form of lump from the mines within the states boundary. The ministry had said that the levy of royalty on the minerals contradicts Rule 64B of Mineral Concession Rules.
Since September 2010 Orissa has been charging a flat royalty amount for all categories of iron ore as against the prevalent system of 10 per cent ad valorem royalty.
However,in a letter to the mines ministry on September 18,Orissa steel and mines department said that the Accountant General Orissa also holds the same view as the state government. Citing the report of CAG on revenue receipts of Orissa for the year ending March 31,2009 the state said royalty is to be charged on unprocessed ore in case of processing of mineral other than unprocessed ore.