Royalty fee on earth fill by Mining Department irks Punjab industry

Chandigarh, November 30

The industry in Punjab is not happy over the demand for royalty fee on earth fill used in construction by the Mining Department. According to industrialists, the demand for the fee has come at a time when the industry has already begun construction after seeking the requisite approvals under the Invest Punjab Policy.

Sources said mining officials had visited some industry construction sites in Ludhiana and Hoshiarpur. “Before commencing construction, we have to seek approvals from over 40 state government departments. Since the mining policy was notified in August 2022, now the mining officials are making visits and asking industrialists to deposit royalty fee for the earth fill as per the policy,” the sources said.

According to the Punjab State Sand and Gravel Mining Policy, 2022, the royalty rate of ordinary clay and ordinary earth is fixed at Rs 2 per cubic feet for use in construction of commercial infrastructure projects except brick-kilns. Further, no royalty fee shall be imposed on excavation of ordinary clay and ordinary earth, which is to be used by farmers for activities other than commercial infrastructure projects, the policy states.

The sources said by quoting the notification, Mining Department employees had been visiting under-construction industrial sites and demanding royalty for earth fill. Although show-cause notices had not been issued, they had threatened to challan the industry or establishment, including the ones being constructed under Invest Punjab Policy, in case one did not deposit this royalty fee.

Amit Thapar, president, Ganga Acrowools Ltd and Chairman, CII, Punjab, said: “This has come as a surprise to us and we will take up the matter with the government.”