Indian Finance Minister, Mr. Arun Jaitely, in his budget speech mentioned that royalty rates on minerals are due since 2012 and needed to be revised based on demand from various minerals rich states.
Leading Iron ore producing states such as Chhattisgarh, Odisha and Jharkhand have demanded hike in royalty rate on the raw material from 10% to 32%, Parliament had informed today.
Minister of State for Steel & Mines, Mr. Vishnu Deo Sai said in a written reply in the Lok Sabha today that mineral-rich states had sought an increase in existing rates of royalty on various minerals.
“Specifically with regard to Iron ore – Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, and Rajasthan have demanded a hike ranging from 12% to 32% on ad valorem basis from the existing royalty rate of 10% on ad valorem basis,” he added further.
The ministry has recently floated a Cabinet note for an inter-ministerial discussion, proposing hike in the rate of royalty on Iron ore to 15%. The rate is revised every 3 years. Last revision, however, was made in 2009.
Current Royalty Rate
|
Mineral Name with Grade |
Royalty Rate |
|
Chromite |
10% |
|
Copper |
4.2% of London Metal Exchange copper metal price chargeable on the contained copper metal in ore produced |
|
Dolomite |
INR 63 |
|
Graphite a) With 40% or more fixed carbon b) With less than 40% fixed carbon |
2% 12% |
|
Gypsum |
20% |
|
Iron ore: Lumps, fines and concentrates all grade |
10% |
|
Lead (a) Contained lead metal in ore produced (b) Contained lead metal in concentrate produced |
7% of London Metal Exchange lead metal price chargeable on the contained lead metal in ore produced.
12.7% of London Metal Exchange lead metal price chargeable on the contained lead metal in concentrate produced |
|
Limestone a) L.D.Grade (less than 1.5% silica content) b) Others |
INR 72 INR 63 |
|
Manganese ore a) Ore of all grade b) Concentrates |
4.2% 1.4% |
Note: Royalty rate in INR/MT or as a percentage of sale prices on ad valorem basis
With inputs from PTI
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