KATHMANDU: The Office of the Auditor General has directed the immediate collection of royalties amounting to Rs 237 million 788 thousand obtained from mines and mine-based materials.

According to the 63rd Annual Report of the Office of the Auditor General, it has been found that the royalty for extraction has not been paid for a period exceeding one year, and extraction has been carried out in quantities higher than permitted. The directive states that the collection must include the royalty rate for ordinary stone at 25 rupees per cubic meter, along with a 30 percent fine as per the rules and a 10 percent local development fee.

According to the Mines and Minerals Regulations, there is a provision that the royalty amount, based on the quantity of mineral materials extracted from the mine, must be deposited into the revenue account within seven days of the completion of each month. A total of Rs 1 billion 594 million and 508 thousand in royalty has been collected from mines that received permission from the Department of Mines and Geology.

There is a provision that a fine of up to 30 percent must be paid if the royalty is not deposited within the stipulated time. According to the department, it appears that three companies are required to submit Rs 49 million 954 thousand, which includes the 10 percent local fee.

The report has directed the collection of that amount. The report notes that although there is a provision requiring individuals, firms, and industries permitted to extract minerals to extract only the quantity specified in the agreement, this has not been followed. Since the department collects royalties based on the quantity submitted by the extractors, the Office of the Auditor General has suggested maintaining the accounts of mineral materials in the designated format.

A directive has been issued to control extraction activities that exceed the extraction permission and the mining scheme. Stating that policies such as establishing a mineral fund, mapping geological information, and preparing a database of all mineral resources have not been implemented, the office has called for the immediate advancement of the process.