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| Contractor makes fortune as dept fails to hold auction | | Revenue collection of Geology and Mining deptt declines in Kathua | | Akshay Azad
ET Report
Jammu, July 6: The revenue collection of Geology and Mining Department in district Kathua has recorded steep decline in the three quarters of last financial year, reportedly due to failure of the department to hold auction of construction material from river Ravi, resulting in amassing of huge money by contractor.
According to data furnished by G&M department of district Kathua department collected nearly Rs. 11 Crores in year 2010-11, while Rs. 13.90 Crores in financial year 2011-12. In the year 2012-13 a total of Rs. 14.43 Crores was collected while in year 2013-14, it collected Rs. 15.53 Crores, but the last financial year shown a steep decline. "Department has given details of only three quarters of the financial year 2014-15 and in three quarters it had collected only Rs. 9.61 Crores and in the third quarter it had collected merely Rs. 30 Lakhs and in first two quarters, it had collected nearly Rs. Nine Crores", according to details.
Sources said that if one follows the revenue collection of first three quarters department would have collected maximum of Rs. 5-6 Crores in fourth quarter, but it would have not reached last year figure of Rs. 15.53 Crores.
Sources attributed decline in collection in revenue to the failure of department to hold auction of royalty contract of river Ravi for the past few years.
"The last auction of royalty contract of river Ravi was conducted by G&M department in year 2012 and the contract was bagged by a contractor from RS Pura. The contractor was, however, a proxy for a Punjab-based Makkad group as being a J&K state subject was prerequisite for participating in the auction", sources said.
They said the contract was to expire in March 2013 but some legal hitches stopped department from holding auction afresh. "Legal hitches proved a boon for mining contractor, who have been securing extensions on royalty contract for the last two years. The royalty on one ton material is Rs 16 fixed by department but the contractor has been charging Rs 90 per ton. One truck carries nearly 40 tonnes of material, and in this way Rs 3600 is being charged as royalty with Rs.3000 extra charge", sources said.
"The dumpers made nearly 800-1000 rounds in river and take river material from Jammu's limit as Punjab limits", sources said, adding that if 800 dumpers were taken into account, nearly Rs. 24 lakh was charged extra by the sand mafia, and in a month nearly Rs 7.20 Crore was charged extra by them.
Sources further said that when new Industry Minister had visited Kathua, he had announced that there would be no further extension of royalty contract but extension was given by department, due to reasons best known to them.
Many bureaucrats, politicians and officials of various departments have been getting huge kickbacks for continue with the extension process rather than holding auction.
The Director of Geology and Mining department, Farooq Khan said the new policy "Minor Mineral Concession Rules 2015- Prevention of Illegal Mining", was yet to be approved by government.
"We have been in process of making new policy for mining. The rules were finalized few months back, but due to some implications same were again sent for approval. After framing of new rules, the auction will be held by competitive bidding process", he said, adding that until the new policy would not be approved, the old process would continue.
Refuting the reports of decline in revenue collection, Khan said that the revenue collection had shown increase trend for the financial year. "I don't know the exact details but it is increased corresponds to last financial year, despite the fact that it showed downward trend in three quarters", he said. |
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