Date:18/09/2004 URL: http://www.thehindu.com/2004/09/18/stories/2004091807541300.htm

National

Increase in royalty for minerals

By Our Special Correspondent

NEW DELHI, SEPT. 17. The Cabinet Committee on Economic Affairs today approved a hike in the royalty rates on non-coal and lignite minerals, fulfilling one of the commitments in the National Common Minimum Programme of the Government.

According to senior officials in the Department of Mines, the hike is expected to result in a total additional income of Rs. 96.39 crores for the major mineral producing States. Rajasthan will be the biggest beneficiary. It will get an additional royalty of Rs. 15.54 crores. It is followed by Andhra Pradesh (Rs. 12.61 crores), Orissa (Rs. 12.54 crores), Madhya Pradesh (Rs. 12.2 crores), Chattisgarh (Rs. 10.63 crores), Karnataka (Rs. 8.82 crores), Tamil Nadu (Rs. 5.46 crores), Maharashtra (Rs. 4.68 crores), Gujarat (Rs.4.05 crores), Jharkand (Rs. 3.42 crores), and Himachal Pradesh (Rs. 3.22 crores). The hike was based on the recommendations of a study group with representatives of Central Ministries, States and the mining industry.

The panel also decided to increase the rates of dead rent to ensure that areas granted under mining lease is not kept idle.