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State Hopes to Generate Rs 2000 Crore as Mines Fee

A revenue of about Rs 2,000 cr is expected by way of stamp duty and registration fees from 26 mines whose lease period were extended as per the MMDR Amendment Act, 2015

Published: 07th May 2015 06:00 AM  |   Last Updated: 07th May 2015 06:00 AM   |  A+A-

BHUBANESWAR: The State Government is expected to generate a revenue of about `2,000 crore by way of stamp duty and registration fees from the 26 mines whose lease period was extended as per the MMDR Amendment Act, 2015.

The State Government has executed supplementary lease deeds in favour of 10  iron and manganese ore mines in Sundargarh district and the remaining mines have been sent to the the Government for approval, official sources said.

After calculation of stamp duty and registration fees by the deputy directors of mines of respective mining circles, the same will be sent to the Revenue department for approval. Lease deed will be executed only after obtaining approval of the Government, the sources said.

State Hopes to Generate.JPGDuring execution of the supplementary lease deed, the miners have to pay 5  per cent stamp duty on the royalty accrued out of highest annual extraction of mineral permitted under the mining plan to the lessees at the time of registration of the leased land.

Since the operation of the Indian Stamp (Odisha Amendment) Act, 2013, Rules and the consequent circulars issued by the Government for closure of mines over non-payment of the duty has been stayed by the Orissa High Court, the lessees have to give an undertaking that they would pay additional duty which is subject to the outcome of the final order of the court.

In the amended Indian Stamp Act of 2013, the State Government has revised the rate from 5 per cent to 15 per cent. This was challenged by more than 40 mining companies, including Federation of Indian Mineral Industries (FIMI), Steel Authority of India Limited (SAIL), Mahanadi Coalfields Limited (MCL) and Tata Steel.

Other conditions to operate mines include payment of net present value (NPV) dues and complying with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the central empowered committee (CEC) on illegal mining in the State, the sources said.

The State Government has issued orders to extend the lease validity of 29 mines- 21 captive and eight non-captive mines. The Government has given three months time for execution of supplementary lease deed.



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