The state government has promulgated an ordinance to levy cess on mineral bearing lands for mitigating the hardships caused by the COVID-19 pandemic.
In this context, Jharkhand Mineral Bearing Land (COVID-19 Pandemic) Cess Ordinance 2020 has been approved, under which a cess of INR 10 would be levied on every metric ton of coal dispatched. Likewise, different cess rates were finalized for iron ore, bauxite, limestone, and manganese.
| Classification of Mineral Bearing Land | Rate of Cess |
| Coal | 10 |
| Iron Ore | 5 |
| Bauxite | 20 |
| Limestone | 10 |
| Manganese | 5 |
Prices in INR/t imposed on dispatch of respective mineral.
It was informed that rates of cess are irrespective of grade/properties of the mineral, and would be valid for three years from the date of the commencement of the ordinance. Besides, the amount would be payable by the holder on the quantity of such run-of-mine/minerals at the time of dispatch.
The fund so collected are to be utilized for rehabilitation/employment of labourers, creating infrastructures, MSME, employment opportunities, mitigating the hardships caused due to loss of jobs, augmenting the existing health Infrastructures and for other necessary purposes within the state arising from the disaster caused by COVID-19.
Central Coalfields Ltd (CCL), the subsidiary of CIL carrying out coal mining operations in Jharkhand, has notified applicability of the cess for all coal dispatch w.e.f. 6 Jul ’20.
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