Criteria for Determination of Fair Surface Rent Added into the KP Minerals Sector Governance Act, 2017
Categorization of Minerals into Groups with Fixed Surface Rents
Before: Businesses in the mineral sector have to pay excessive surface rents as there was no prescribed surface rent criteria.
After: A fair criteria for charging surface rent has been notified to safeguard businesses in the minerals sector.
|Beneficiaries||All the Businesses Involved in the Minerals Sector|
|Department||Khyber Pakhtunkhwa Minerals Development Department|
|Date of Implementation||17-06-2021|
● A wide range of different minerals being extracted in the industry, uncertainty in surface rent led to a lack of fairness in the rent actually charged.
● This meant that some businesses were being charged more than the fair amount, leading to an increase in costs for them.
|Analysis||● Through consultations, it was deemed necessary to create a system by which minerals could be clubbed together in groups and have a surface rent rate prescribed to each of these groups.|
|Solution||● To allow a fair surface rent, a fixed rate was devised for each of the mineral categories.|
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