The State Government on Thursday decided to enhance surface rent on mining leases bearing major minerals, which would yield Rs 11 crore per annum. The State Cabinet’s decision to this effect was informed to the media by Chief Secretary Jugal Kishore Mohapatra.
Under the Rule 27(1) (D) of the Mineral Concession Rules, 1960, the holder of a mining lease is liable to pay surface rent in respect of the surface area used by him for the purpose of mining operations. However, such rate would not be exceeding the land revenue and cesses assessable on the land as may be specified by the Government in the lease.
Way back in 1984, the State Government had prescribed the amount of surface rent to be collected in the mining leases, which was Rs 10 per annum per hectare. The CAG in his Revenue Receipt Report for the year ending March 31, 2008 pointed out that the assessing officers levied annual surface rent at the rate of Rs 10 during the period from 2003-04 to 2006-07 irrespective of land revenue, for which the Government sustained an annual loss of Rs 74.79 lakh.
The report observed a Revenue Department notification way back in 1963 stipulated that the rent for land used for commercial purposes shall be levied at the rate of 1 per cent of the premium, i.e., market value of the land and in addition cess is leviable at the rate of 5 per cent of the rent. The rate of surface rent in respect of land assessable to land revenue would be equivalent to the land revenue, which is currently equal to 1 per cent of the market value of land per annum and cess as admissible.
Secondly, Rs 3,000 per annum would be levied per hectare for medium value minerals and iron ore. A sum of Rs 5,000 per annum per hectare would be levied for leases granted for high value minerals and Rs 10,000 per annum per hectare for leases granted for precious metals and stones and cess as admissible.