Dehradun | Dec 06, 2016: Demonetisation has dealt a big blow to the mining sector in Uttarakhand. The mining activities in the state have reduced by 75% since the November 8 move by the central government, a senior forest department official said.

“Mining in the state has come down by 75%. The number of vehicles which collect mining material from river bed have come down from 200 to mere 20-30 in Dehradun only. The squeezing of cash flow is one big reason. The vehicle owners face problems in paying money at toll booth and to the labourers,” said Uttarakhand forest development corporation managing director STS Lepcha.

Lepcha said that the real estate sector is also facing problems due to demonetisation so not much construction is happening, which is why the demand for sand, gravel too has fallen drastically.

The mining starts in October every year and the UFDC gets 20% royalty out of the total revenue of around Rs 120 to Rs 140 crore from mining for the entire season before it comes to an end in the month of June with the onset of monsoon.

However, he exuded hope that whenever cash flow gains momentum, the construction projects for roads and buildings would start. With this, the revenue generated by mining will also improve to some extent. The demonetisation, as well as plummeting of real estate sector, are the major reasons that the mining sector has been hit badly, he said.

However, officials feel that as the cash flow picks up, the situation would get better.

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