By IANS
Ranchi : The Jharkhand government is in the process of finalising a law to curb illegal mining in the state.
The state cabinet last month cleared the Jharkhand Minerals Dealers Rules (JMDR), 2007. The JMDR make it mandatory for mineral companies to be registered with the state mineral department.
The government hopes that the new rules will not only prevent illegal mining and smuggling but also help in generating resources.
The state government will be able to generate around Rs.2 billion a year in taxes and royalty from registered dealers.
“The new rules will put the brakes on illegal marketing and smuggling from the state. At present, the mineral department does not have any idea about the stock of minerals with dealers,” said Jai Shankar Tewary, secretary, mines and mineral department.
Officials said the government loses revenue as coal, bauxite, iron ore and other minerals are smuggled outside the state.
The new rules will empower government officials to inspect and verify stocks and minerals purchased by dealers. Dealers can be fined and punished if found violating rules.
The rules will be sent to the assembly for approval. Jharkhand is a mineral-rich state and receives royalties worth around Rs.11 billion from different mines.