The Odisha government has refused to abide by a clause of the Mineral Concession Rule (MCR), 1960, dealing with royalty charges on minerals, citing certain flaws in it.

According to Rule 64 B, sub-rule (1) of the MCR Rule 1960, the states can charge royalty on the minerals that has been processed within the leasehold area of a particular mine. But the Odisha government wants to collect royalty on the basis of mineral produced and not after it is processed within the mining lease area.