Government of Gujarat has passed a resolution to charge royalty on minor minerals used as building materials from the end-users, instead of lease holders, with effect from April 1, 2011.
Minister of State for Mines and Minerals Saurabh Patel said the decision for change has been taken to bring about transparency and simplification in the process. Gujarat thus became the first state in the country to effect such a change.
The minor minerals for construction purpose are mostly used in government buildings and private houses. However, no royalty will be charged for private houses below 50 square meter area, keeping the interest of small and poor people in view.
The government has taken this decision to deduct the royalty at source on the basis of built-up area at the time of passing the building plan, instead of deducting the amount from the bills of lease holders every now and then. The minor minerals for which the change has been effected are:
Sand/ soil/ gravel/ kankar
Blackstrap (kapchi, grit, metal, rubble, etc)
Building stones, limestone/ sandstone/ quartzite etc
Brick soil (included)
As per the new mineral policy announced, the Minister said, the royalty on the entire quantity will be recovered from the bills of contractors of Gujarats Roads & Buildings, Irrigation, Panchayat and other Departments as well as State-run Boards and Corporations.
The Minister gave details of procedures adopted for deducting the royalty as follows:
(a) The government departments and branches concerned have to ensure full recovery of the royalty for construction or repairs or renovations, as per the prevailing rates in consultation with the Finance Department, and accordingly inform the Industries & Mines Department.
(b) The royalty of the minor minerals used in government constructions has to be deducted from the running bill.
(k) Municipal Corporations/ Local Autonomous Bodies/ Municipalities under Panchayat/ Urban Development Department, Boards/Corporations under other Departments have to decide the amount to be deducted as royalty before the building plan is passed by individuals for private constructions.
(kh) The amount recovered as the royalty has to be deposited in Departments concerned in a stipulated time.
The fee royalty pass/ delivery system for sales/ dispatch of minor minerals used in building construction for sales/ dispatch in the state would be as prevalent for lease holders.
Those lease holders/ traders/ stockists interested to sell/ dispatch minor minerals except sand outside the state, or for private companies in the state have to pay royalty in advance with the Commissioner of Geology and Mines or competent authority appointed by him as per the rules to get royalty pass / delivery challan.
The deduction of royalty for Central Government Departments/ Undertakings and other construction organizations, which do not come under the new decision, would continue as earlier.