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The tussle between the state government and miners over the recent order on mining stamp duty has hit a new pitch as the former refused to relax the deadline for collection of the levy.
While miners, such as Tata Steel, have filed case in the state High Court, mining lobby body Federation of Indian Mineral Industries (FIMI) plans to approach the court tomorrow.
"Tata Steel has filed a case in the High Court praying for annulment of the amended stamp duty act and stay order on the 3 July order of the state government to halt mining operation of all those miners who are working under deemed extension clause without paying stamp duty after 9 July. The case has been listed for Monday. Mining lobby body FIMI plans to move the court as no individual miner has been served notice," said a state-based miner. The state government last week issued orders that said miners, who were continuing operation under deemed extended clause without paying stamp duty, will have to halt mining after July 9, if they fail to pay the duties by that time.
The order sent jitters among large miners such as Tata Steel, Aditya Birla-controlled Essel Mining as many of their mines are running under deemed extension clause. The order is also likely to hit some central PSUs like National Aluminium Company (Nalco), Steel Authority of India Ltd (SAIL) as they are also operating their mines under the deemed extension clause, which allows them to run their mines after expiry of the lease period.
"The government's order, if implemented, would have an impact of Rs 50,000 on the mining industry in the state. Many companies operating in steel, aluminium and power sector will be affected. Hope the government would take some measures to diffuse the situation", said Prabodh Mohanty, spokesperson for East Zone Miners' Association (EZMA).
The state government has so far not showed any indication to relax the deadline, which ends on Tuesday, but said, it would consider the cases of miners who make written submission to them. So far, about 330 applications of mine lessees are pending for renewal while 57 leaseholders are continuing operations under deemed extension provision. On May 21 this year, the state government issued notification on amendment to stamp duty act, named as Indian Stamp (Odisha Amendment) Act, 2013. The revised act said, miners have to pay stamp duty from the expiry date of mines lease even if the lease is not renewed.
The stamp duty rate is equivalent to 15 per cent of the total royalty paid by the miner. The amount will be deducted at the time of execution of lease agreement. Similarly, if the renewal of mines lease is rejected, then the government has to refund the amount, the new law said.
The idea behind such amendment was that while miners were able to excavate minerals without renewal of lease because of deemed extension clause, the state government was not getting revenue towards stamp duties, sometimes for decades, due to notoriously slow process of forest department clearances required for lease renewal.
