Centre has decided to increase royalty rates for iron-ore from 10% to 15% of the selling price. The move is expected to bring about a significant increase of over Rs 600 crores in annual mineral revenue collection by the state.
A decision to the effect was taken at a recent central cabinet meeting chaired by the Prime Minister Narendra Modi in New Delhi. In his recent visit to Delhi, Dr Raman Singh requested the PM, to decide the rate of mineral royalty on the basis of market value and also to revise iron-ore royalty rate in proportion to its present market price, in the larger interest of iron-ore producing states like Chhattisgarh.
Director, geology and mining, Anbalgan P informed that in the last financial year 2013-14, Chhattisgarh government collected total mineral revenue of Rs 958.57 crore from iron-ore.
In this duration, the state had average royalty collection of Rs 300 per ton. From September 2014 in financial year 2014-15, the rate of royalty shall be increased by 5% and hence, the rate of average royalty collection will reach nearly Rs 450 per ton.
It has been estimated that with the hike in royalty rate, the revenue collection on iron-ore supply will reach nearly Rs 1,600 crore in financial year 2014-15.
Compared to the collection of previous financial year 2013-14, the iron-ore revenue collection this year is expected to increase by Rs 642 crores. According to Anbalgan P, state government had recovered total revenue of Rs 3,235.42 crore from various kinds of minerals in the previous financial year 2013-14. As a result of the Centre's decision to hike iron-ore royalty rates on request of chief minister Dr Raman Singh, Chhattisgarh government is expecting total mineral revenue collection of Rs 4,100 crore in the current financial year 2014-15.
It is noteworthy that iron-ore mining is mainly carried out in hilly areas of Bailadila in South Bastar (Dantewada) district by National Mineral Development Corporation (NTPC). Steel Authority of India Limited (SAIL), a public undertaking of Central government, operates the iron-ore mines in Dallirajhara for Bhilai Steel Plant.
Source: The Times of India
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