Haryana Chief Minister, Manohar Lal Khattar, on Tuesday announced a waiver for the mining sector in view of the lockdown imposed due to the Covid-19 pandemic.

Under it, the state government will waive the dues on account of contract money and Rehabilitation and Restoration (R & R) fund for 26 days between 25 March, 2020 to 19 April, 2020 from all such mineral concession holders who were operating mines at the time when lockdown was imposed.

Khattar, who was presiding over a first-of-its-kind meeting with the mining contractors of the state today, the waiver will be subject to the condition that the proportionate production for said 26 days is reduced from approved capacity.

The CM further announced that the interest on non-payment of the pending dues, if any, pending as on 24 March, 2020 for the period 26 days would also be waived off, as a one-time relief package.

He said that mining contractors or lease holders in case of seeking surrender (unconditional request) of lease will be allowed the same subject to condition that they submit an application with no dues certificate up to the calendar month and also pay surrender fee equal to one-month contract money as surrender fee.

However, such surrender fee would be equal to two months dues in case applications are submitted during 1 June to September 15 (Monsoon period).

The CM said in case of fresh mines to be auctioned the condition for increase of annual dead rent after every three year period of lease would be 10 per cent instead of existing rate of 25 per cent . Apart from this, the rate of interest on delayed payment of government dues would be reduced from 21 per cent per annum to 12 per cent annum, he added.

Khattar said the mining contractors will be given the option to furnish security of an amount equal to 25 per cent of annual contract money in the form of fixed deposit. The CM said the riverbed mining contractors would be allowed to stock mineral within contracted areas up to three times of average monthly production as against the existing limit of two times of average monthly production.

He said that the government will examine the feasibility for upfront fixing of the amount of compensation to be paid to the landowners in case of riverbed areas. However, in case of Panchayat land the same will be 10 per cent of the annual contract money.