BHUBANESWAR | Aug 05, 2016: The steel and mines department has prepared a list of 12 mining blocks for extension of lease period according to the provisions of the Mines and Minerals Development and Regulation Act, 2015.
An inter-departmental committee headed by development commissioner (DC) R Balakrishnan would examine the eligibility of different blocks on August 8 before recommending the state government to extend the lease periods.
Lease periods of two blocks each of Rungta mines and Prabodh Mohanty mines are likely to be extended. A number of dolomite, limestone and granite mines would also be put before the panel for extension of lease periods, official sources said.
So far, the state government has extended lease period of 75 mining blocks and earned a seizable amount of revenue in terms of stamp duty and registration fees from the lessees after signing of supplementary lease deeds, said an officer.
Mining operations in all the above blocks were suspended following the mega mining scam that surfaced during 2009-10.
According to official sources, the state government's motive behind extending lease period of the blocks was to scale up the ore production thereby enhancing the revenue collection from the sector.
Due to slow pace of mining activities in Odisha and sharp decline in the prices of minerals in international market, mining revenue collection has dipped in the first quarter of the current financial year.
Revenue collection from mining and metal sector is pegged at Rs 900 crore against the target of Rs 1,400 crore in the first quarter. It was Rs 967 crore in the corresponding period of the previous fiscal year.
As the Centre has asked the state government to expedite mining auction process, the steel and mines department has prepared a list of limestone and dolomite blocks.
"We would get the approval of the the DC-headed panel before the blocks go under the hammer," an officer said.
The state government would issue notification for auction of at least two mining blocks by August-end, said steel and mines minister Prafulla Mallik.
(Source: http://timesofindia.indiatimes.com/)