Expert group to meet to review royalty on minerals in India

Thursday, 20 Oct 2011

ET reported that an expert group of the Mines Ministry will hold its first meeting this week to review the royalty rates due for revision next year for all major minerals other than coal, lignite and sand.

The 17 member study group which will submit its report in six months, will not only take into account the present Act governing royalty but also the new draft mines law Mines and Mineral Bill which is likely to be tabled in the winter session of Parliament.

A Mines Ministry official said "The first meeting of the Study Group constituted under the chairmanship of Additional Secretary (Mines), Mr Sanjay Srivastava regarding revision of royalty rates and rates of dead rent for minerals (other than coal, lignite and sand for stowing) has been convened here on October 21."

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.

Mr S Vijay Kumar Mines Secretary had said earlier that the group will not only review the royalty rates based on existing Act but will also recommend royalty as per the new mines Bill and the mechanism for its computation.

He said that the committee will also recommend royalty as per MMDR Bill, 2011 taking into account the liabilities on the lease holder.

The proposed new Mines law provides that the coal miners share 26% of the profit and others an amount equivalent to royalty amount with the project-affected people.

The next upward revision in royalty rates is due in August 2012. Rates are revised every three years and the last revision was done with effect from August 13 2009.

(sourced Economic Time)