Mines Dept. to collect seigniorage based on weight and not value
Minister for Mines and Geology P. Ramachandra Reddy has introduced the federal government’s resolution to change the system of amassing seigniorage on mines from value to weight foundation, and to present sand for Jagananna Colonies undertaking by coupons freed from price.
Besides, the federal government has resolved to award minor mineral leases by the e-auction route.
Addressing a overview assembly on the Mines & Geology Department on Wednesday, Mr. Ramachandra Reddy mentioned larger emphasis was being laid on curbing unlawful mining and correct weighment of automobiles, which might improve the income by up to 20%.
Further, preserving the complexity of monitoring the excavations (checking unlawful mining and transportation) in view, the division reached the conclusion that by entrusting the gathering of seigniorage to outsourcing businesses on the district stage, it might focus on the regulation half.
“This model is being followed in Rajasthan and some other States, and applies to all minor minerals,” he mentioned.
The general steps had been anticipated to improve the seigniorage by up to 40%. In FY 2020-21, the seigniorage income was ₹1,643 crore.
The Minister insisted that the weight foundation of seigniorage evaluation was a extra correct manner of calculating the costs than the value metric. Closed circuit cameras had been being put in on the weighbridges for watching the method of weighment, whereas the officers did their duties.
Mr. Ramachandra Reddy mentioned the e-auction of minor minerals was possible to fetch ₹476 crore for the State exchequer this 12 months.
The division has already obtained 2,694 purposes for excavation of minor minerals in 21,577 hectares.
Jai Prakash Ventures has thus far taken out 16 lakh tonnes of sand and offered 9.28 lakh tonnes and stocked 6.72 lakh tonnes for the monsoon season.