Increased Royalty Rates Applicable from 01 Sep’14

Indian government has notified mineral royalty hike.

Bhubaneswar: Indian government has notified the increased royalty rates of 53 minerals in Government of India gazette notification dated 01 Sep, 2014 (Monday). The increased royalty rates of mineral have come into force from date of the notification.

The union mines Minister, Narendra Singh Tomar has already made it clear that the increased royalty rates would not be applicable retrospectively and no compensation would be given to the states.

The union government reviews mineral royalty rates in every three years. The last revision was done in 2009 and a revision was due in 2012, as the UPA government had hanged the decision. The NDA government on 20 Aug, 2014 has cleared the proposal to hike mineral royalty rates. Subsequently, the mineral rich states like Odisha – demand that the states should be compensated from 2012 onwards. However, the union government has turned down their demand.

With this royalty hike, Odisha government is expected to earn additional INR 16.3048 billion, which would take the total royalty collection to INR 48.7992 billion. However, this year the state may not get the full benefits of the hike owing to closure of several leading mines.

For more details click the below link:
http://www.steelmint.com/fileForMail/royalty_notice.pdf