INDIA: New royalty rates for Iron Ore and other minerals by June end 

The Indian government is likely to come up with new royalty rates for major mineral resources like Iron ore and coal by month-end which will boost its earnings significantly. 

Once, the new rates are implemented, the same would not only increase the revenues significantly but also address the concerns of the states, seeking larger share of royalty, an official said. 

There are 51 minerals prescribed in the second schedule of the MMDR Act, 1957, and the rates vary from mineral to mineral. The royalty on iron ore is 10 per cent at present. 
Dissatisfied with the present royalty rates, states like Odisha and Chhattisgarh have already demanded a multi-fold increase in the levy. 

Odisha Chief Minister Naveen Patnaik had said in a letter to Prime Minister Manmohan Singh last year that the mining industry is earning “super normal profits” at the cost of the state. 

He had also demanded a 50 per cent mineral resource windfall tax, taking a cue from Australia, which has decided to levy higher taxes on iron ore from July, 2012.