NEW DELHI: The Union Cabinet on Wednesday approved a proposal to amend the Second Schedule to the MMDR Act to specify the royalty rates of certain minerals, including potash, emerald and platinum group of metals.
The approval would ensure auction of mineral blocks in respect of glauconite, potash, emerald, platinum group of metals, andalusite, and molybdenum thereby reducing imports of these minerals, an official release said.
"Cabinet has approved a proposal for amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, for specifying the rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite, and Molybdenum," it said.
The approval will help generate empowerment opportunities in the mining sector as well as the manufacturing sector which will further help in ensuring inclusive growth of a large section of the society, the release said.
The Mines Ministry had proposed reasonable rates of royalty in order to encourage better participation in the auction of mines.
Without sharing any figure, it said the rates have been fixed after extensive consultations with the state governments and various ministries/departments of the central government.
The Ministry of Mines will provide a methodology for the calculation of average sale price rice (ASP) of these minerals required for enabling the auction of these mineral blocks.
The statement further said more than 146 blocks have been put up for auction in the financial year 2021-22. Of this, 34 blocks have been successfully auctioned in the financial year.
Specification of royalty and ASP for the minerals like glauconite/potash, emerald, platinum group of metals (PGM), andalusite, and molybdenum would increase the number of blocks for auction.