DMG collects dead rent from non-operational leases

Team Herald

PANJIM: Directorate of Mines and Geology (DMG) has said it has collected dead rent and surface rent from mining companies, whose leases were not operational, despite the second renewal, for being located in the buffer zone.

In a statement issued on Wednesday, the department said the collection of royalty or in the case of non- working leases surface rent and dead rent is a right of the owner of the lease that is the government of Goa.

“The leases in Goa were in operation as per Apex Court order dated February 7, 2018 till March 15, 2018. Some of the leases though were granted second renewal could not operate leases as per Apex Court order dated April 21, 2014 as they were falling within buffer zone of one kilometre from protected areas like wildlife centaury,” the department stated.

“As such, those leases which were operational were supposed to pay royalty, whereas those which did not work were supposed to pay dead rent and surface rent,” it added.

The leaseholders have accordingly paid royalty or surface rent and dead rent up to financial year 2017-18. “Reassessment of such payment was undertaken by the department so that exact dues payable to State exchequer for the period between 2015 to 2018 could be collected along with interest wherever payable and the last date for payment as per reassessment was fixed up to June 30,” the department said.

Dead rent is the rent fixed for mines without considering whether the mine is profitable or not. It is mostly fixed in a mineral lease. On the other hand, surface rent is the rent for the area leased.

Total 88 mining leases were granted second renewal, of which only 71 leases were given environment clearance by the Union Ministry for Environment and Forest (MOEF). Total 17 leases were declined EC for being located in the buffer zone area.

Of the 71 leases, only 37-44 leases were in actual production for the period from 2015 to 2018.