Karnataka - Bangalore

Mining contractors owe Rs. 141.05 cr. to Government

BANGALORE: The Public Accounts Committee of 2006-07 has reported that there is an outstanding of Rs. 141.05 crore from mining contractors towards fees and royalty payable to the Government in March 2006.

The PAC report tabled in both Houses of the legislature on Thursday stated that the outstandings till March 2000 was Rs. 174 crore, but part by part payment by the contractors reduced the balance to Rs. 91.13 crore in 2001. Since then, the rate of royalty and fixed fees had risen by 55 per cent, taking the outstandings to Rs. 141.05 crore in 2006. The report has objected to the Government’s laxity in collecting the outstanding fees and royalty.

The Government, however, sent a reply stating that efforts were being made to collect them.

The PAC stated in the report that the sub-rule of the State Minerals Act stipulated that the Government should take the fixed fee and royalty of the first six months in advance, which was a pre-condition for licence for mining. The PAC pointed out that if the contractors failed to pay the fees and royalty in time, the Government could collect the dues from the contractors as a part of their land tax or even move the court to attach their properties.

The PAC advised the Government to take action against the officials who failed to collect the fees.

The committee suggested that all the disputes pertaining to mined material and the outstanding fees and royalty should be quickly disposed of.

The PAC suggested that if a contractor wanted to surrender his licence, all the dues should be recovered before the security deposit was returned.

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