Karnataka's mining receipts are expected to fall short of the Budget estimate by Rs 250 crore.
The Karnataka Medium Term Fiscal Plan (MTFP) 2012-16 report has estimated this shortfall. The State Budget 2011-12 had set a target to collect Rs 1,500 crore.
The Department of Mines and Geology has collected Rs 671.35 crore as royalty during the 2011-12 (upto November 2011), compared to Rs 1,184 crore during the whole year (2010-11).
The major revenues of the department are royalty on major and minor minerals. The department has cited that the ban on extraction and export of iron ore has reduced 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 2011-12 (up to November 2011), a total of six quarry leases for ornamental stone and 330 leases for building stone have been granted and seven mining leases have been sanctioned.
During 2010-11, about 24 quarry leases for ornamental stone and 774 leases for building stone and 29 mining leases were granted.
To prevent illegal mining and transportation, the Department of Mines has established 13 composite check-posts at vital points with departmental officers and officers from police, commercial tax and PWD.
The department is also in the process of mounting RFID and GPS devises to the vehicles which transport minerals. In order to curb illegal mining, the State has framed the rules titled ‘Karnataka (prevention of illegal mining, transportation and storage of mineral) 2011' under provision of section 23(C) of MMRD act 1957.
The Department of Mines according to the direction of the Supreme Court, has also under taken electronic auctioning process for seized iron ore.
A Web-based system is operational in the Department of Mines for the last nine months and has generated 1,30,143 e-permits for a total quantity of 129 lakh metric tonnes of mineral worth Rs 445 crore.