The union mines ministry has convened a high level meeting to decide on the new rate of royalty on minerals like Iron Ore and Bauxite on 26th of this month.Mineral bearing states like Odisha have been demanding for increase in the royalty rates for the last few years. The inter-ministerial committee on revision of the royalty, which has been constituted by the union mines ministry rates, has already submitted its report to the ministry and during the up coming meeting the ministry is expected to take call on the suggestion of the committee.
Currently the government collects 10 percent royalty on sale price of iron ore and Chrome lumps and fines of all grades on ad valorem basis. The Odisha Chief Minister Naveen Pattnaik has been demanding for increasing theroyalty rates and imposition of a mineral resource rent tax. “In addition to the upward revision of royalty rates in tandem with the soaring prices of minerals, there should be a mineral resource rent tax to be charged at 50 per cent of the surplus rent,” Naveen had said in his letter to the union mines minister Dinsha Patel last year.
-Tapan Moharana
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