This story is from February 18, 2020

Jaipur: Mining body wants leases on first-come basis

For bringing in transparency and enhancing revenues for the state, the Federation of Mining Associations of Rajasthan (FMAR) has urged the state government to follow the system of ‘first come first serve’ route for granting mining leases to khatedar or its NOC holder.
Jaipur: Mining body wants leases on first-come basis
The mining industry wants the newly imposed land tax lifted
JAIPUR: For bringing in transparency and enhancing revenues for the state, the Federation of Mining Associations of Rajasthan (FMAR) has urged the state government to follow the system of ‘first come first serve’ route for granting mining leases to khatedar or its NOC holder.
In its budget recommendations to the state government, FMAR also said the newly imposed land tax on mining leases should be lifted to provide relief to the mine operators.

“The government should reconsider the process of issuing mining leases on first come first serve basis in addition to auction route. For mineral deposits in khatedari land, application route by khatedar or his registered NOC holder should be adopted which would invite better response from investors. If the application model is used, it will remove uncertainties and development will see faster implementation,” said Akshaydeep Mathur, secretary general of FAMR.
Similarly, Mathur said up to 25% of government land adjacent to or inside khatedari land should be included in the mining leases for safe and scientific mining.
The industry body urged the government to make changes in the registration fees. Currently, the fee is charged as a percentage of the DLC rate prevailing in the area. But Mathur said since mining leases do not provide ownership, the calculation of registration fee should be based on the dead rent fees.
“Till 2007, registration fees in case of new leases and transfer used to be calculated as a percentage of twice dead-rent fees. Recently, this has been changed to a percentage of 4-times of the DLC rate of the land falling inside the mining lease. Since mining leases does not award ownership, dead rent method should be followed,” Mathur said.

The land tax, which was withdrawn by the Congress government in 2013, has again been re-imposed from November 2019 on leases above 10 hectares. Mathur said land tax is detrimental to the growth of mining industry as it imposes financial hardship on the lease holder.
“Mining lease holders are already paying heavy amount to the DMF fund for betterment of the society. The federation has requested the government to withdraw the tax. Legal validity of land tax to be imposed by state governments is already under review of the SC and as such the matter is subjudice,” Mathur added.
FAMR also suggested the government to bring in a separate policy for sands and not club it with mining policy. “There is no value addition to sands like other minerals,” Mathur said.
Even though mining in Rajasthan takes place in 0.7% of the land area, it currently contributes the highest non-tax revenue to the state and provides employment opportunities, both directly and indirectly, to 30 lakh people.
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