Bhubaneswar: The state government expects a large income benefit from the mining sector during the financial year 2021-22 with most of the mine auctioned before the breakup of Covid-19 after starting production.
Resources in the State Steel Department and the Ministry of the Mining Department, said the collection of revenue from the mining sector in the first quarter (April-June) was estimated at RS 9,049 Crore (on June 28) compared to the CRORE RS 2,735 collected in the previous fiscal period.
, The collection is in accordance with the initial estimate and may rise a little after the final audit by the department, an official said.
In the growth of mining income, a senior official of the Department of Steel and Mines said, “his growth was due to the collection of premiums from the mineral blocks auctioned during February-March, 2020.
While 19 blocks were auctioned before the plague of pandemic, as many as 16 have started production and shipping.” Premium (Committed during a mineral block auction) is a percentage of mineral sales paid rent to the state government as tax every month.
It was over and above the royalty.
Collection of mining income may not be the same in all four quarters because production and shipping can be influenced in the second quarter because of the monsoon.
Lease holders, which have reached production targets, may also be slow in the next quarter.
“We will have a clear picture of the annual collection of the mining sector only after September-end,” the official said.
Seeing the rate of collecting current income from the mining sector, the total can double the previous year’s collection (20-21), another official said.
The mining sector contributed Rs 13,600 Crores during the 2020-21 financial year while collecting more than RS 11,000 Crore during the 2019-20 financial year.
By collecting revenue from several other sectors such as GST, VAT, excise, stamp duty and registration fees are expected to fall in the first quarter of fiscal because of Covid’s induced locking and shutdown, the growth of the revenue collection from the mining sector must come as a breath for the state government.
With the center that has issued a new mining auction rule, the state government plans to auction more than 12 mining blocks.
The meeting of the empowerment committee at the mining auction is scheduled for Wednesday, which will receive auction when notification that invites the tender is likely to be issued in the second week of July, the official said.