The State Government got its facts right to demand a special regulator on the lines of TRAI (Telecom Regulatory Authority of India) to fix royalty rate for coal and other minerals and relaxation of environmental clearance norms to expedite the industrial projects when it makes a presentation before the 14th Finance Commission on Thursday seeking around Rs 1.40 lakh crore for the next five years.
According to sources, the State will present its concerns over the growing liability on account of implementing the Food Security law, pension burden of Rs 2500 crore to be paid to Bihar under the "unjust" provision of Bihar Reorganisation Act and future liability of salary hike in view of the proposal to set up the 7th pay commission.
The 14th Finance Commission team headed by former Reserve Bank of India Governor YV Reddy arrived here on Wednesday. The panel is mandated to devise a formula for sharing of taxes and grants between the Centre and the states for a five-year period from 2015. The 13th Finance Commission had granted Rs 3600 crore to the State.
Sources said that under the norms, the Centre has to revise the royalty on coal and minerals every three years, but it is often delayed upto five years. The private and public sector units may benefit from the delay but there is a great loss to the State exchequer. So, according to sources, the State government will seek the commission to recommend a provision for setting up an independent regulator who will fix the rate in order to compensate the delay. Besides, the State will also demand to fix minimum rate of royalty for coal at 20 per cent. "Our analysis shows that before the present ad-valorem system of computing royalty, the State used to get 21 per cent royalty. The new system brought down the royalty up to 14 per cent, inflicting a loss of six per cent. So, we will demand a minimum of 20 per cent royalty on coal," pointed out an official requesting anonymity.
Also, the State Government will demand the Commission not to bracket Jharkhand along with other States for granting forest clearance for the industrial projects. "We want such exemptions for the private industrial units for using land as are applicable to the government of India projects," said the official. The logic behind it is that Jharkhand happens to have 30 per cent forest cover. Out of the rest 70 per cent, only 30 per cent of land is cultivable.
"So, if the industrial projects are asked to give land for land, they will cut into the acreage of agricultural land only hitting the food production," he pointed out. The State Government will also pitch in to compensate the funds Jharkhand pays to the railways for the new projects. "Despite the State contributing the funds, the railways have inordinately delayed the projects leading to escalation of cost every year. So, why should the State pay for the inefficiency of the railways," asked a Government official.
Moreover, for the first time, the State Judiciary has also pitched in get funds for the improvement of judicial administration and development of infrastructure seeking over Rs 1000 crore for the next five years.
The demand of State Judiciary has been included in the memorandum to be submitted by the personnel and building construction departments. The office memorandum of State Judiciary, prepared at the initiative of Chief Justice R Banumathi, has sought around Rs 33.83 crore every year for doubling the strength of judicial officers in the district and subordinate courts. The State government has already been requested to create posts of 447 judicial officers in various categories.
Besides, it has sought around Rs 75 crore every year to pay salary to the ministerial staff, including 894 assistants, 1447 stenographers to assist the additional judicial officers. The State Judiciary has further sought Rs 363 crore for the new building of the high court and Rs 102.95 crore for the residential complex. It has also demanded Rs 5.66 crore for the e-Court project.
According to sources, the human resources development department will seek around Rs 26,000 crore to provide basic facilities like desk-bench, toilets, laboratories, libraries etc. The wish list of Panchayati raj department will incur something around Rs 5100 crore while the rural development department will be seeking a sum of Rs 8350 crore to give boost to the Indira Awas Yojana and construction of block offices.
The agriculture department is also said to have prepared a memorandum of over Rs 9,000 crore while the health department will seek Rs 8850 to bring a change in the government's medicare system. The drinking water & sanitation, panchayati raj, building construction and urban development departments too are said to be ready with their wish list.