TataCliq CPA IN

Rs 800 Cr from Mine Lease Deeds

The State Government has received Rs 800 crore from execution of supplementary lease deeds with 17 mines.

“The Government is expecting to generate more than Rs 1,200 crore revenue from stamp duty and registration fees from the miners after execution of lease deed of all the 29 mines whose lease period was extended as per the MMDR Amendment Act, 2015,” Minister of State for Steel and Mines Minister Prafulla Kumar Mallick said.

Flipkart IN

Since the operation of the Indian Stamp (Odisha Amendment) Act, 2013, Rules and the consequent circulars issued by the Government for closure of mines over non-payment of the duty has been stayed by the Orissa High Court, the lessees have to give an undertaking that they would pay additional duty which is subject to the outcome of the final order of the court.

In the amended Indian Stamp Act of 2013, the State Government has revised the rate from five per cent to 15 per cent. This was challenged by more than 40 mining companies, including Federation of Indian Mineral Industries (FIMI), Steel Authority of India Limited (SAIL), Mahanadi Coalfields Limited (MCL) and Tata Steel.

The State Government has issued orders to extend the lease validity of 29 mines – 21 captive and eight non-captive. The Government has given three months time for execution of supplementary lease deed.

Among the mine owners who have signed the lease deeds to restart operations are KJS Ahluwalia, KN Ram and Co, KP Enterprises, Rungta Mines, Odisha Manganese and Minerals Ltd (OMM), Tata Steel and Aryan Mining and Trading Corporation (AMTC).

Other conditions to operate mines include payment of net present value (NPV) dues and complying with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the Central Empowered Committee (CEC) on illegal mining in the State, official sources said.

Revenue from mining sector fell from Rs 5,674 crore in 2013-14 to Rs 5,308 crore in last fiscal due to closure of a large number of mines. The Government had set an ambitious target to collect Rs 6,347 crore in the last fiscal which was later revised to Rs 6,600 crore.

Leave a Reply