SC Ruling On Mining Tax: Senior Cong Leader Srikant Jena Urges Odisha Govt To Scrap ORISED Act

Bhubaneswar: Senior Congress leader Srikant Jen has urged Odisha government to convene a special session of the Legislative Assembly to scrap the ORISED Act, 2004 and pass a new Bill in the wake of rejection of the Centre’s review petition on states’ mining tax rights by the Supreme Court.

Jena, in a statement on Sunday, said the Supreme Court, in its landmark judgment on October4, rejected the Centre’s review petition upholding its own verdict of July 25 and August 14. The rulings of the SC allow mineral bearing states to levy taxes and cess on minerals and mineral-bearing lands. This will bring much-needed economic relief to Odisha, he said.

In the light of the apex court’s ruling, the former Union minister called upon the state government to withdraw the petition on ORISED Act pending in the Supreme Court challenging Orissa High court ruling of 2005.

He also demanded that a special session of the Assembly should be convened urgently for a detailed discussion on scrapping the ORISED Act and introducing a new Bill as it will be a road map for the socio-economic development of the state.

“The new Bill can include several important provisions to better serve the interests of Odisha, which were ignored in the ORISED Act. Besides, the market value of minerals can be fixed,” he said.

“A committee of experts should be formed to determine the market value of minerals. The committee should be chaired by a High Court judge to ensure transparency and fairness in the valuation process. It will assess the true market value based on quality, demand, and location advantages, ensuring Odisha receives a fair share of the wealth from its mineral resources,” he added.

Jena also raised the following issues to be taken up by the state government:

• Remove the ceiling of 20% tax on minerals as was mentioned in ORISED Act 2004
• Bauxite and chromite are in abundance in Odisha. The State should take the locational and qualitative advantage of these specifically located minerals and fix cess at 50% of the market value.
• Iron-Manganese-Coal cess should be increased to 30-40% of the market value
• 50% of the collected cess and taxes from the minerals and mineral bearing lands should be spent in respective area

“I hope the Chief Minister will take note of my suggestions and act immediately in the best interest of the state and its people,” he said.