With buoyancy, State increases mining royalty recovery target

 

 

With buoyancy returning to the market after the impact of COVID-19 on economy, the State Government has increased the mining royalty recovery target for the district administrations in Maharashtra by 12 per cent as compared to that in the previous year. Due to COVID-19, which had impacted revenue collection of the Government, the targets were reduced for past some years. During COVID-19 period, the erstwhile Government in State had first increased revenue collection target through mineral royalty, but had to later accept the ground situation. The mineral royalty recovery target for 2021-22 was set at Rs 3,700 crore for entire Maharashtra. As the State recovered from the pandemic shock to the economy following vaccination drives, and as the activities resumed, the Government decided to reduce the target as compared to pre-COVID period and gradually increase in subsequent years. Accordingly, in 2022-23, the target was reduced to 2,500 crore. Now, in 2023-24, the target has been increased by 12 per cent, to Rs 2,800 crore.

 

As far as Vidarbha region is concerned, the mineral royalty recovery target was set pretty high in 2019-20, which was largely pre-COVID period barring the month of March 2020. Back then, the target for Nagpur Division was Rs 619.8310 crore and that for Amravati Division was Rs 392.3593 crore. In 2020-21, despite COVID-19 and lockdown, the erstwhile Government in State still increased the target -- Rs 660.09 crore for Nagpur Division and Rs 783.10 crore for Amravati Division. In 2021-22, considering the ground situation, the Government made downward revision in target -- Rs 622.75 crore for Nagpur Division, and Rs 432.40 crore for Amravati Division. Still, it was on higher side. Due to higher revenue targets, the administration was under pressure, said sources. Besides, the process of carrying out specially sand ghat auctions got affected, which affected revenue generation for the administration. Hence, in 2022-23, the targets for revenue recovery from mineral royalty were reduced to Rs 405 crore for Nagpur Division, and Rs 305 crore for Amravati Division.