Bhubaneswar: Uncertainly looms large over the auctioning of 16 mines in the state in March next year as the Centre is yet to give its approval.
Financial experts are of the opinion that the state government may face difficulties to raise adequate revenue from the mining sector if it fails to auction the 16 mines as per schedule.
It is expected that the state government may launch new schemes and projects for people in the upcoming budget keeping in view the Assembly and Lok Sabha elections next year.
According to experts, the state government is most likely to desist from imposing new taxes to raise revenue for financing the new schemes and projects. The government would rather try to collect adequate non-tax revenue to fill its coffers.
“Mining sector contributes a lion’s share to the state’s revenue. The state government may find it difficult to meet the revenue target if the 16 mines are not auctioned as per the schedule,” said an observer.
It is worth mentioning that Union Coal Secretary Anil Mukim, during his visit to the state in August this year, had revealed that the Odisha government was keen to auction around 18 mines in the current fiscal. According to him, the state government had sent a proposal in this regard to the Centre.
However, the Centre is yet to give its approval to the state for the auctioning of the mines including 10 iron ore mines.
“We can auction the 16 mines only after receiving the approval from the Centre,” said Steel and Mines Minister Prafulla Mallick.
On the other hand, the state government is also facing problems in collecting penalties worth Rs 4,000 crore from the leaseholders of 31 mines as per the Supreme Court order on illegal mining.
Notably, the apex court had directed the state government to collect 100 per cent penalties from the leaseholders of 152 mines for undertaking mining activities without receiving environment clearance.
Acting upon the SC order, the state government had decided to collect penalties worth Rs 17,500 crore from the leaseholders. Till date, the state has collected Rs 14,000 crore from them.
“Some leaseholders have shut down their mines. So, we are facing problems to collect the penalties. Though there is a provision to confiscate the properties of leaseholders with regard to evasion of penalties, our officials are facing difficulties to estimate the properties,” said a source in the Steel and Mines department.
PNN