BHUBANESWAR: State government expects huge revenue gains mining area Most of the mines auctioned during the financial year 2021-22 took place before the outbreak of Covid-19, in which production had started.
in sources State Steel and Mines Department said revenue collection The collection from the mining sector in the first quarter (April-June) is estimated to be Rs 9,049 crore (as on June 28) as against Rs 2,735 crore collected in the corresponding period of the previous fiscal.
An official said the collections are as per initial estimates and may increase slightly after the final audit by the department.
On the increase in mining revenue, a senior official of the Department of Steel and Mines said, “This increase is due to the collection of premium from the auctioned mineral blocks during February-March, 2020. While 19 blocks were successfully auctioned before the outbreak of the pandemic, more than 16 have started production and dispatch. ”
The premium (committed during the auction of the mineral block) on the sale of the mineral is a percentage that the lease pays to the state government as tax every month. This is over and above royalty.
Mining revenue collection may not be uniform in all the four quarters as production and dispatch may be affected in the second quarter due to monsoon. Leaseholders who have achieved production targets may also grow at a slower pace in subsequent quarters. “We will have a clear picture of the annual collection from the mining sector only after the end of September,” the official said.
Another official said that considering the current pace of revenue collection from the mining sector, the total could be double the collection of the previous year (2020-21).
The mining sectors contributed Rs 13,600 crore during the financial year 2020-21, while the collection during the financial year 2019-20 was over Rs 11,000 crore. With revenue collection from several other sectors like GST, VAT, excise, stamp duty and registration fee expected to fall in the first quarter of the financial year due to the Covid-induced lockdown and shutdown, the revenue collection from the mining sector should pick up in the state. As a relief to the Govt.
The Center has already issued new mining auction rules, the state government plans to auction more than 12 mining blocks. A meeting of the Empowered Committee on Mining Auction is to be held on Wednesday, which will decide on the auction, while the notification inviting tenders is likely to be issued by the second week of July, the official said.
in sources State Steel and Mines Department said revenue collection The collection from the mining sector in the first quarter (April-June) is estimated to be Rs 9,049 crore (as on June 28) as against Rs 2,735 crore collected in the corresponding period of the previous fiscal.
An official said the collections are as per initial estimates and may increase slightly after the final audit by the department.
On the increase in mining revenue, a senior official of the Department of Steel and Mines said, “This increase is due to the collection of premium from the auctioned mineral blocks during February-March, 2020. While 19 blocks were successfully auctioned before the outbreak of the pandemic, more than 16 have started production and dispatch. ”
The premium (committed during the auction of the mineral block) on the sale of the mineral is a percentage that the lease pays to the state government as tax every month. This is over and above royalty.
Mining revenue collection may not be uniform in all the four quarters as production and dispatch may be affected in the second quarter due to monsoon. Leaseholders who have achieved production targets may also grow at a slower pace in subsequent quarters. “We will have a clear picture of the annual collection from the mining sector only after the end of September,” the official said.
Another official said that considering the current pace of revenue collection from the mining sector, the total could be double the collection of the previous year (2020-21).
The mining sectors contributed Rs 13,600 crore during the financial year 2020-21, while the collection during the financial year 2019-20 was over Rs 11,000 crore. With revenue collection from several other sectors like GST, VAT, excise, stamp duty and registration fee expected to fall in the first quarter of the financial year due to the Covid-induced lockdown and shutdown, the revenue collection from the mining sector should pick up in the state. As a relief to the Govt.
The Center has already issued new mining auction rules, the state government plans to auction more than 12 mining blocks. A meeting of the Empowered Committee on Mining Auction is to be held on Wednesday, which will decide on the auction, while the notification inviting tenders is likely to be issued by the second week of July, the official said.
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