Relief scheme for mineral royalty defaulters in Gujarat

State government eyes over Rs 300 crore pending recoveries

In a much needed respite to Gujarat-based lease holders of minor mineral mining, the state government on Thursday announced a relief scheme for those who failed to pay royalty on mining of such minerals. As per the scheme, interest on pending royalties would be waived off on certain conditions, which is believed to encourage small lease holders to clear their royalty dues.

The scheme is believed to help state exchequer to recover dues worth Rs 332 crore, which has been pending for long. Minor minerals include construction materials like gravel, black trap, stone, sand and soil.

Announcing the scheme in the state assembly on Thursday, Saurabh Patel, minister of state for industries and mines informed that the scheme will be applicable to those small lease holders or miners, who, some how, could not make timely payment of the royalty or dead rent and attracted interest because of delay. The scheme will not be applicable to major minerals.

The scheme will be applicable to all cases relating to pending recoveries of royalty of minor minerals as on December 31, 2011.

"In state, there are about 5876 such default cases, which includes small lease holders, miners, general consumers, farmers and small brick makers. The defaulters will have a chance to apply for relief under this scheme between April 1, 2012 and September 30, 2012," Patel said.

According to the scheme, interest will be waived off, if all dues will be paid during the said period of the scheme. Also, there are provisions for settlement in cases relating to unauthorised mining, transportation, storage of such minor minerals in the leased out area, on condition of payment of single royalty. While in case of the unauthorised mining, transportation, storage of such minor minerals in the non-leased area, case will be settled by payment of double royalty.

According to Patel, a longer delay in payment of royalty or dead rent for mining had led to court cases between government and lease holders or miners. Which was troublesome for the administration as well as for these small lease holders or miners or brick kilns owners. "With implementation of this scheme, all such cases will be withdrawn and the state government would be able to recover long pending dues," Patel said.