BHUBANESWAR: The Steel and Mines Department is all set to break its previous record on revenue earning. The Department on Wednesday surpassed the revenue target of Rs 4,000 crore set by the Government for the current financial year.
The Department which had set a revenue target of Rs 2,000 crore for 2010-11 doubled it for 2011-12. The target was surpassed despite the fact that mining operation has been stopped in a large number of mines and there is a ban on transportation of minerals through trucks and other heavy vehicles.
The Department is confident of reaching a target of Rs 10,000 crore if the mines operated illegally do business as per the law and the Centre accepted the State Government demand for collection of mineral resource rent tax (MRRT) on super normal profit of the export of iron ore, said a senior officer.
Though the State Government moved the Centre demanding permission to levy MRRT on super normal profit on iron ore trade, the Ministry of Mines said the proposal needs further study.
The revenue earning of the Department in 2004-05 was Rs 670 crore as against a target of Rs 618 crore. However, revenue realisation fell short of the target in the following financial year. The department collected Rs 805 crore as against a target of Rs 860 crore.
Similarly, there was a revenue shortfall of Rs 14 crore in 2006-07. The Department had set a target of collecting revenue of Rs 950 crore.
However, things started looking up since 2007-08. The Department has been achieving higher target since then. The revenue earning of the Department crossed the Rs 2,000-crore mark in 2009-10. The revenue earning was Rs 2,020 crore as against a target of Rs 1,600 crore.
Being the owner of the natural resources, the State Government feels it has the right to get a fair share of the profits from the extraction of ores for the benefit of the poor.
The insatiable demand for iron ore in the export market in the last few years has resulted in the mineral becoming a profitable commodity with returns being far in excess of economically acceptable rates.
The National Mineral Development Corporation (NMDC), a Central Government PSU, sold 17.46 million tonne iron ore in 2001-02 and made a profit of Rs 343.32 crore. However, the profit of the corporation, which sold 26 million tonne iron ore in 2010-11, jumped to Rs 9,727 crore.