A letter has been received from the Centre in response to Odisha's demand for imposition of mineral resource rent tax on super normal profit made by miners, Chief Minister Naveen Patnaik told reporters here.
The letter sent by Union Minister of State for Mines Dinsha Patel is being examined by the steel and mines department, he said.
"An appropriate reply will be given to the Centre early next week," the chief minister said.
Patnaik had sought imposition of a special mineral resource rent tax on miners in two letters to the Centre in November last year and in January this year, sources said.
Describing Odisha government's demand as unjustified, Patel in his letter said all mines owners do not earn super normal profit like the state-owned National Mineral Development Corporation (NMDC).
He said it may not be prudent to generalise that the entire iron ore mining sector is earning profit to the scale equivalent to NMDC, which is a fairly large miner enjoying high-grade deposits.
Since FOB value also includes cost of transportation and handling charges on which royalty cannot be levied, it may not be appropriate to only see the FOB value of iron ore to conclude that super profits are being generated, he said. (MORE) PTI AAM SKN NIK