Continuing its confrontationist stance, the Mamata Banerjee Government has once again objected to the Union Power Ministry’s suggestion that Bengal reduce its cess charged on coal.
Reacting rather strongly to the Union Power Minister Piyush Goyal’s suggestion
that the State should form a committee to explore the possibility of bringing down the cess charged on coal from a high of 25 per cent Bengal Power Minister Sobhandeb Chattopadhyay said the
Central Minister’s suggestion amounted to “interference in the affairs of the State.”
Goyal after meeting Chattopadhyay said that Bengal Government should form a committee “to study with an open mind on how the State is imposing 25 per cent cess in coal extraction which is
different from other States where there is 14 per cent
royalty system and the benefits and losses from it.”
He further made “suggestions that if 14 per cent royalty which is imposed by the other States is applied to Bengal, I think the State will be benefitted as the production of coal will rise and overall revenue will rise and not fall. Power cost too will come down and help the industry.”
The Union Minister said that the small committee should be chaired by the State Power Secretary and should submit its report in four weeks’ time.
However, Chattopadhyay soon reacted saying it was an “interference and encroachment in the affairs of the State. “Though it is a suggestion we see this as an encroachment in the State’s domain” former State Power Minister Manish Gupta said adding, “the revenue generated from the coal cess goes for funding developmental projects like primary education. Reduction of cess will hit the revenue earning.”
Gupta also questioned the logic behind Goyal’s statement when the Centre had itself raised the coal cess by 300 per cent recently.
The State Power Department’s reaction to Goyal’s suggestion is a continuation of Chief Minister Mamata Banerjee’s hardening stance against the Centre when she attacked Prime Minister Narendra Modi for bulldozing the State’s by proposing to appoint officials in district treasuries and the BDO offices to monitor expenses.
“The Centre is bulldozing the States in the name of corporate federalism,” she said, blaming Modi for “giving India an arrogant, dictatorship.” Speaking on the naming of the centrally sponsored schemes she wondered, “why will a scheme be launched after the Prime Minister and the BJP will take advantage out of thatIJ” she asked saying “I will write a letter to the President seeking his opinion on the issue not as a private person but as a constitutional figure head of the country.”