Chandigarh

Hry announces concessions, sops for mining contractors

PNS

From now onwards, if any mining lease holders in Haryana are unable to obtain environmental clearance and operation consent within 12 months from the date of issuance of consent letter, they will liable to pay one percent of the annual bid amount for the first six months and two percent of the annual bid amount for each month for the next six months.

“Such contractors would have to pay interest at the rate of 12 percent per annum on the amount due which would be applicable from the date of commencement of the contract. However, the amount of interest shall not exceed 50 percent of the total amount payable,” said the Chief Minister while presiding over the review meeting regarding resolving long pending mining disputes and problems.

Khattar said that the duration of the contract will not change, which means that the date of commencement of the period will remain the same as fixed earlier.

The Chief Minister said that in cases where the mining contractor could not execute the contracts and operate the mines, the initial security deposit (10 percent of the bid amount) deposited at the time of auction would be

forfeited and cancelled, while 15 percent of the bid amount and any other amount demanded by the department will be waived off.

If the demand was made to give up or surrender the mining contract on the ground that the mine area was found to be less than 50 percent of the reserve forest and area found under Aravalli Project plantation, in such cases the contract would be deemed to be terminated and there will be no liability on any of the parties, he further said.

Chief Minister said that if 25 to 50 percent of the area of the mine allotted to a contract holder is reduced due to any reason, in all such cases the annual contract amount will also be reduced in proportion to the mine area.

However, the disputed mining area should not exceed 25 percent of the total area, he added.

The quantity of mining carried out by the contractor during the first 3 years of mining should be 90 percent or more of the total sanctioned quantity. Even if there is a reduction of more than 50 percent in mining areas, only 50 percent of the contract amount will be reduced, he said.

It was informed that if the Pollution Control Board has not given consent to establish or consent to operate after obtaining environment clearance or after  granting the consent which has been stayed by the High Court, then the contract amount for that period will be forfeited.

On submission of an application for surrender, after two months from the date of closure of mining, the contract would be considered terminated and the contractor would have to pay money for only two months. The contractors are required to pay 2 installments after the date of surrender, it was informed,

If the entire outstanding amount is deposited within 90 days of the contracts which have been terminated before March 31, 2010, then the entire interest amount will be waived off. Similarly, in cases of contracts that have expired or are in progress after April 1, 2010, then 50 per cent of the interest amount will be waived off if the contractor pays the entire outstanding amount within 90 days.

However, the interest amount has to be deposited within the next 90 days.

The Chief Minister said that as per the announcement made in the budget session this year, these concessions have been given to the mining contractors under ‘Vivaadon se Samadhan’ programme run by the State Government with the objective to resolve pending disputes of the mining contractors.

He added that with this initiative, the contractors will be benefited and the state will also get revenue and functioning of mining activities will be made smooth.