Jaipur | May 02, 2016 : In a major setback to mining department, the finance department has once again sent a new draft of mining rules back raising objections on several clauses. This is for the second time that the rules could not be finalized due to disagreement between two departments, affecting overall mining activities in the state.

Suggesting auction rather than allotment of all sorts of mines, the finance department has asked mining department officials to reconsider its proposal. For old mines too, the department has recommended that instead of taking license fee, process of auctioning should be followed. Proposal to give mining licenses directly to those who have been awarded prospective license has also been overruled by the finance department. It will now have to be auctioned.

Annoyed with the delay in finalization of mining rules, the department officials blamed finance department for its non-cooperation. "These rules have been worked out by the cabinet sub-committee and at other levels. Still raising objections is beyond understanding," said an official of mines department.

According to officials, the auctioning of three cement blocks was carried out once but it could not generate much enthusiasm.

"Finance department wants to grant leases of all the lands whether they belong to forest or agriculture through auctioning. It was done for the cement blocks but response was not encouraging. We requested them to allow us to grant licenses without auctioning which they have again rejected," added the official.

Rajasthan has already issued its mineral policy in 2015 but rules to implement it are yet to be finalized. A committee was also constituted to finalize it but in the absence of consensus rules could not be chalked out. However, the delay has led to loss in revenue to the state exchequer from mining sector.

The department was eyeing revenue of Rs 5,000 crore in last financial year. However, it could only realize Rs 3,600 crore.

(Source: http://timesofindia.indiatimes.com/)