Post News Network
Bhubaneswar, March 25: The state government has fixed a revenue generation target of Rs 6,720 crore from mining sector in the coming 2016-17 fiscal, even as it is likely to miss the target fixed for the same sector in the current fiscal.
Sources said, the state government as on February 28, 2016 has been able to collect Rs 4,786.71 crore making it a mammoth task for the steel and mines department to collect the remaining around Rs 1,000 crore in the last month. The state has fixed the collection target from mining sector at around Rs 6, 750 crore for this fiscal ending March, 2016.
Due this poor show of mining sector, non-tax revenue receipt has suffered in the state. In 2014-15, the state had also suffered a loss in collection of mining royalty after closure of several mines in the state. While the collection target from mining royalty was Rs 6,347 crore, the department of Steel & Mines in that year could collect only Rs 5,308 crore. However, following the new Mines and Minerals (Development and Regulation) Act, several mines in the state have since reopened.
As the state government has started auctioning of mines from January this year, it is hopeful to garner more revenue from the sector next fiscal onwards. It also expects to receive its share from recently concluded coal auction from the Centre. Notably, the state is yet to receive Rs 566 crore of coal auction money from the Centre. According to state Finance minister, additional revenue is likely from the process of mining auction. Besides, the state will also focus on timely collection of arrears.