Haryana govt allows defaulting contractors to resume mining
In a controversial move, the Haryana government on Thursday allowed defaulting mining contractors in the state to resume mining operations by granting relaxation for the payment of dues.
Mining contractors in Haryana owe Rs 553 crore to the state government and have failed to pay despite the introduction of a one-time settlement scheme.
Government data showed that out of the 48 operational mines in the state, 38 mining contractors have defaulted in making payment of government dues and the operations of 13 have been suspended.
There are 20 mining contractors who have defaulted on payment for more than six months while 16 have not payment for 3-6 months. There are 12 contractors who have not paid for less than three months. The maximum number of defaulters are in Yamunanagar (21) followed by 13 in Charkhi Dadri.
As per the mines and geology department statistics, the revenue collection from minerals went down drastically in 2021-22 financial year – from Rs 1,020 crore in 2020-21 to Rs 685 crore in the next fiscal (till February 11, 2022).
What’s the payment requirement
As per the Haryana Minor Mineral Concession, Stocking, Transportation of Minerals and Prevention of Illegal Mining Rules, 2012, mineral concession holders (mining contractor) are under obligation to pay advance monthly instalment of contract money on or before of seventh day of month.
Besides, they are also required to pay an additional amount equal to 7.5% of the contract money along with instalments towards the mines and minerals development restoration and rehabilitation fund and 2.5% towards district mineral fund. If there is a default on payment, the contractors are liable to pay the interest.
However, if the contractor fails to pay dues with interest, mining operations can be suspended till the time the default is cleared. If the contractor deposits at least 50% of the due amount with an undertaking to pay the balance amount within three months along with interest concurrent with the instalments payable during this period, the director, mines and geology can revoke the suspension. But if the concession holder fails to deposit the dues despite suspension of operations, the director can order termination of mineral concession.
Govt acted on the representation of contractors
A May 12 government order said the mining operations in a number of mines were suspended and many were to be suspended as contractors had major defaults in payment of government dues as on April 1, 2022. The order said many contractors on suspension of the mining operations submitted representations that they are not able to pay all dues or 50% of the dues and sought relaxations by vowing to pay two instalments – one concurrent and one for pending dues.
“In the overall interest of the state government having taken note of the situation and representations made by the concession holders to ensure that mining remains operational in state, the government in exercise of powers under Rule 118-A has decided to grant relaxation in payment of dues as a one-time measure,” the order said.
A senior official, who did not want to be named, said the solution provided by the government was quite okay.