Kathmandu. The Office of the Auditor General has directed the government to immediately recover Rs 237.78 million royalty received from mines and minerals.

According to the 63rd annual report of the Office of the Auditor General, the excavation was found to have not paid royalty for more than a year and the amount of excavation was more than the permit. It has also asked to recover the royalty rate of Rs 25 per cubic meter and 30 percent fine and 10 percent local development fee as per the rules.

As per the Mines and Minerals Rules, the royalty amount should be deposited in the revenue account within seven days of the expiry of each month. A total of Rs 1.59 billion royalty has been collected from the mines licensed by the Department of Mines and Geology.

If the royalty is not paid within the stipulated time, then a fine of up to 30 percent will be paid. According to the department, three companies have to pay Rs 49.9 million including 10 percent local fee.

The report said that the amount should be recovered. According to the report, the agreement-based individuals, firms and industries are not required to excavate minerals only in the quantity specified in the agreement.

The Office of the Auditor General has suggested that the department should keep the accounts of minerals in the prescribed format as it takes royalty on the basis of the quantity paid by the excavators.

Directives have been given to control excavation activities beyond the mining permit and mining scheme. Stating that the policies of establishing a mineral fund, mapping the geological information and preparing a database of all mineral resources have not been implemented, it has been asked to take the process forward immediately.