Karnataka's mining receipts may fall shy by Rs 250 crore

BANGALORE: The mining receipts of Karnataka likely to fall short by Rs 250 crore of the Budget estimate.

The shortfall is estimated by the Karnataka Medium Term Fiscal Plan (MTFP) 2012-16 report. The State Budget 2011-12 had set a target to collect Rs 1,500 crore.

During the 2011-12 (upto November 2011), the Department of Mines and Geology has collected Rs 671.35 crore as royalty, as compared to Rs 1,184 crore during the whole year (2010-11).

The major revenues of the department are driven by royalty on major and minor minerals. The department also found that the ban on extraction and export of iron ore has minimised the illegal mining in the State.

“However at the same time it has also adversely affected revenue mobilisation of the state. Apart from this, revenue from sand mining also has been shifted to the public works department (PWD),” the MTFP said in a statement.

In 2011-12 (up to November 2011), a total of 6 quarry leases for ornamental stone and 330 leases for building stone have been granted and 7 mining leases have been sanctioned.