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India hikes royalty rates of minerals

03:11 PM @ Tuesday - 26 August, 2014
NEW DELHI(Commodity Online): India government has approved the revision of royalty rates and dead rent of all major minerals except minor minerals, coal, lignite and sand for stowing as per provisions of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 It also approved the application of these rates in all the States and Union Territories.

The royalty rate of Iron ore and bauxite would see a surge of 15 per cent against the earlier 10 per cent. Manganese ore would attract a royalty equivalent to five per cent from 4.2 per cent of the notified sales price.

The new revsion is likely to esult in an increase in input prices for all mineral-based industry, especially steel and cement. It should also substantially boost state government revenue. With this decision, the royalty to mineral rich States would increase by 41 percent from Rs. 9406 crore (2011-12) to Rs. 13274 crore (estimated). The last revision of rates was notified on .2009.
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