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The state cabinet today approved a proposal to revise annual surface rent applicable for mining lease holders which is expected to generate additional Rs 11 crore revenue.
This is the first time when the government decided to raise the surface rent for mining lease areas since 1984, when the rents were fixed last time. The surface rent, which is collected annually, is divided into two segments.
For land assessable to land revenue, surface rent is collected at one per cent of market value of the land. For land not assessable to land revenue such as barren land in mineral deposit areas, the rent was fixed at Rs 10 per hectare per year.
The government today decided to raise the surface rent for land not assessable to land revenue i.e mineral bearing areas as per the recommendation of an expert panel.
Henceforth, surface rent would be collected in such areas at one per cent of market value of the land with a minimum payment of Rs 3,000 per hectare per year for iron ore bearing areas, Rs 5,000 for high value minerals such as manganese, chromite and Rs 10,000 per precious metals and stones. It has also been decided to collect Rs 1,000 per hectare per year for low value minerals.
"The estimated annual additional revenue yield due to this revision shall be approximately at Rs 11 crore," said a cabinet note.
The rise in surface rent could push stamp duty as well because it is one of the component that is taken into consideration while assessing stamp duty. Stamp duty is collected on the basis of preliminary expenses, security deposits, surface rent, and royalty to be payable by the leaseholder. The recent decision of the Odisha government to collect stamp duty at the 15 per cent of royalty has been challenged in court.
