New Delhi: The Centre has revised the royalty rates of major minerals. The rates have been, in fact, reduced for mines allotted thorough auction.
The union ministry of mines through a notification published on September 2,2019 has invoked its power under sub-section 3 of section 9 of the Mines & Minerals( Development & Regulation ) Act, 1957 to amend the Second Schedule of the said Act to revise the royalty rate of major minerals except coal including lignite and sand for stowing.
As per the notificatioin, the royalty rates have been fixed for iron ore(Hematite Ore-45% Fe) is 13.5% advelorum and 15% for mines allotted without auction. The rate was 15%.
Bauxite rates has been revised to 0.54% advelorum (for auctioned mines) of London Metal Exchange aluminium metal price chargeable on the contained aluminium metal in ore. The rate is 0.60% for mines allotted without auction. The rate for merchant bauxite ore is 22.5% for mines allotted without auction and 25% for auctioned mines. The rate was 0.6% for mines allotted without auction.
For chromite, the rate is 13.5% advelorum for auctioned mines and 15% for mines allotted without auction. The rate was 15%
Managanese rate has been revised to 4.5% and 5% for all grades. The rate was 5%.
Graphite (with 80% or more fixed carbon) royalty rate has been revised to Rs 201 per tonne for mines allotted in auction and Rs 225 for mines allotted without auction.
Even though the royalty rate was supposed to be revised every three years, it was revised after five years. The last time the royalty rates for major minerals was revised on September 1, 2014. The rates were then revised upwardly for 23 of the 51 minerals including iron ore, bauxite, chromite, manganese.