BHUBANESWAR: Even as the state government has been repeatedly demanding the Centre to revise royalty of major minerals, Union Mines and Coal Pralhad Joshi on Monday said there is no such proposal after introduction of action regime.
Responding to a query from BJD MP Sasmit Patra in the Rajya Sabha, the minister said to evaluate the revision of royalty rates and dead rent for minerals (other than coal, lignite, sand for stowing and minor minerals), the Ministry of Mines on February 9, 2018 constituted a study group consisting of representatives from mineral rich states and representatives of mining industry/associations /federations. The study group submitted its final recommendation on July 25, 2019.
On subsequent representations from the stakeholders, the ministry constituted a committee on October 27, 2021 to review the rates of royalty of those minerals whose rate is calculated on per tonne basis. The panel submitted its report on March 7, 2022. The report was examined in the ministry and it was observed since the introduction of the auction regime through an amendment in the MMDR Act, 1957 on January 12, 2015, a total of 330 mineral blocks have been auctioned out of which most of the mines are yet to be operationalised.
He said royalty accrual to state governments has more than tripled during the last four years. Revenue from mineral sector will continue to show an upward trend in all mineral-rich states with the operationalisation of auctioned mines. “As most of the auctioned mines are yet to come into production stage, the impact of the present royalty rates on the downstream industry cannot be determined at this stage. Therefore, at present it is not feasible to revise the rates of royalty for minerals,” the minister said.
To Patra’s query of accrual of royalty from major minerals in the last five years, Joshi said Rs 38,840.54 crore have been collected from 17 mineral bearing states from 2017-18 to 2021-22. The highest Rs 17,983.69 crore was collected from Odisha.