Monday, May 23,
Terming the procedure of fixing the sale value of iron ore by IBM (Indian Bureau of Mines) as “flawed”, the Orissa Chief Minister, Mr Naveen Patnaik, has asked the Centre to revise the price to match the prevailing market rate.*
“The methodology and procedure being used by IBM is flawed and detrimental to the interest of the State Government. The value so derived due to incorrect procedure and lack of in-built checks does not accurately capture the market price of the mineral,” Mr Patnaik said in a letter to Union Minister of State (independent charge) for Mines, Mr Dinsha J. Patel.
IBM publishes the sale value of iron ore on a monthly basis, over which royalty is calculated. Currently, the sale value is fixed by IBM and the state believes the iron ore rates to be under estimated as a result of which the State Government is incurring losses in terms of royalty.
Mr Patnaik also suggested until any instructions is issued, “Whenever the sale value is fixed by IBM for different grades is lower than the all-India average price or the NMDC price, whatever is higher for the particular grade should be adopted for purpose of calculation of royalty on ad-valorem basis”
Source: The Business Line
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