Tamil Nadu’s mineral revenue declined about 24.5% to ₹983.07 crore during 2020-21 from ₹1,302.60 crore during 2019-20 as production declined because of COVID-19, according to the policy note on mines and minerals for 2021-22, which was tabled in the Assembly on Tuesday.
The note also highlighted the measures to boost revenue, with the government proposing to come up with a sustainable mining policy. It said the process to bring limestone mineral blocks in Ariyalur district to auction was under way, and the government would get a substantial revenue from the upfront payment from successful bidders.
Molybdenum mineral resources were estimated at 6.005 million tonnes in Dharmapuri district and 0.699 million tonnes in Krishnagiri district. The royalty rate for molybdenum was awaited from the Ministry of Mines; on its receipt, the blocks would be brought to auction.
Among major minerals, lignite production stood at 1,78,67,468 metric tonnes and limestone at 1,87,74,341 metric tonnes during 2020-2021. Beach sand minerals production stood at 7,63,000 metric tonnes, the note said.
During 2020-21, 12,390 vehicles were seized and ₹11.73 crore was collected in penalty for illicit mining. Besides, 10,680 criminal cases and First Information Reports were registered and 22 cases were booked under the Goondas Act, it added. The government had already issued orders for curtailing illicit mining and quarrying to check the leak of mineral revenue. For effective enforcement, it decided to fix a target of surprise inspections of quarries and mines for the Collectors and other officials, the note said.
To prevent excess mining in the leased-out areas and mining of minerals outside the leased boundaries, drone technology was deployed for assessing the quantum of minerals removed to recover the cost of minerals from the lessees and invoke penal provisions against them.
The government had already sanctioned ₹50 lakh during 2020-21. In the first phase, drone technology was used in Theni district. For this, a memorandum of understanding was executed with the Aero Space Research Center, MIT Campus, Anna University. It was proposed to use the technology to prevent revenue loss and curb illicit mining at all limestone, rough-stone and granite quarries to start with. The condition of a quarry, including the availability of minerals, would be captured at least twice a year, the note said.
To restore the abandoned mines and quarries, the government proposed a ‘Green Fund’, for which the lessees would be levied a fraction of the seigniorage fee, in addition to the existing charges. This fund would be maintained by the Collectors.
