Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-x5gtn Total loading time: 0 Render date: 2024-05-01T19:35:04.593Z Has data issue: false hasContentIssue false

Appendix: Memorandum from Mineral-Bearing States

Published online by Cambridge University Press:  16 October 2020

Shashi Ratnaker Singh
Affiliation:
University of Cambridge
Get access

Summary

Demands from the mineral-rich states (memo to the 12th Finance Commission [FC]), Jharkhand, Madhya Pradesh and Odisha, are as follows.

Jharkhand

The state government is of the opinion that Jharkhand has to be treated as the special case. In any devolution formulae, there will be states where the formula just ‘doesn’t fit’. Jharkhand has a heavy preponderance of natural resources, which are exploited by the central government, but at the same time give a faulty picture of the per capita GSDP of the state. In these special cases an alternative to the formula must be considered. (Finance Commission of India, 2004: 19)

Specifically with regard to mining, the memo to the 12th Finance Commission says,

Incessant mining by the central government agencies has had 3 adverse effects on the state:

  • The land used for mining cannot be put to any productive use once the mining is complete;

  • Human suffering because of displacement is a tremendous burden that needs to be compensated through an adequate rehabilitation package;

  • The ecological and environmental impact of mining is irreparable and the state should be compensated for the same.

At present there is no national programme to compensate the states for the irreparable damage caused by mining activities. The royalty that is paid to the state government is inadequate considering the huge loss that the state is suffering. The necessity to arrive at a fair royalty is critical for the state and should not be dealt as a commercial activity only, but should also consider the ecological and social aspects of mining. (Ibid.)

Madhya Pradesh

Views on coal royalty:

We would like to examine and refuse the popular counter arguments that have so far been used to resist correcting this gross injustice to coal bearing states. One popular counter argument against increase in the rate of royalty has been that it leads to an increase in the landed price of coal. The landed price comprises the pithead price, royalty, other cess, freight and taxes. The share of royalty in the landed price of coal is not very significant. The economic impact of increase in landed price due to any of its components is same on the performance of the coal consuming industries.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×