Considering the far reaching consequence on the decision not to allow mining operation from July 9 in the event of failure on the part of miners to deposit stamp duty, the State Government seemed to soften its stand as the miners threatened to knock the doors of the Odisha High Court.
“If the miners would approach formally in writing, the Government would consider their plea on merit to address the problem,” said Steel and Mines Minister Rajani Kanta Singh, asserting that still there was no change in the decision to collect stamp duty from the defaulting miners.
Steel and Mines Secretary Rajesh Verma on July 3 last in a circular had asked the concerned District Collectors to stop operation of mines under deemed extension provision, if the lease holders fail to deposit stamp duty by July 9 as necessitated under the amended Stamp Act.
The Indian Stamp (Odisha amendment) Act, 2013 requires that the lease holders who have applied for renewal prior to expiry of the lease but the renewal has not been granted by the Government or is deemed to have been granted as per the provisions, must pay the requisite stamp duty by July, the letter said.
The letter also pointed out that the applicants continue to enjoy the benefits of deemed extension whereas the state Government is deprived of substantial amount of revenue which otherwise would have been payable by lessees on the renewal of their leases.
The amendments of the act were required to ensure that the applicants do not avoid payment of the stamp duty.However, while the Tatas has already gone to the Odisha High Court challenging the decision of the State Government, the Indian Mining Industries Association also decided to knock the doors of the court on July 8.
The outstanding stamp duty to be collected is estimated around Rs 50, 000 crore. If the mines are not allowed for operation for default in payment of stamp duty, then it would have a long term and adverse effect not only on mines sector but also the industries like steel and aluminium depending on mines and minerals, the association said.
Meanwhile, a delegation of the Eastern Zonal Mining Association met Chief Secretary Jugal Kishore Mohapatra and Principal Secretary of Steel and Mines Rajesh Verma to reconsider the direction. They stated if mining operation is stopped, the State will suffer in several ways. However, there was no categorical assertion from the officials.