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Government of India
Ministry of Mines
09-December-2013 17:52 IST
Royalty Rate of Minerals

 

            The existing rates of royalty in respect of major minerals (excluding coal, lignite and sand for stowing) were last revised vide gazette notification number G.S.R. 574(E) dated 13.8.2009. The rates of royalty in respect of Coal including Lignite were revised vide notification number G.S.R. 349 (E), dated the 10th May, 2012 by the Ministry of Coal. The rates of royalty in respect of Sand for Stowing were revised vide notification number G.S.R. 214(E) dated the 11th April, 1997 by the Ministry of Coal. The existing rates of royalty are:

 

Name of mineral with grade

Rate of Royalty

(In Rs. per tonne or as a percentage of sale price on ad valorem basis)

i) Apatite:

ii) Rock Phosphate  

    a) Above 25% P2O5

    b) Upto 25% P2O5

5%

 

11%

6%

Asbestos

a)  Chrysotile

b)   Amphibole

 

Rs.880

15%

Barytes

5.5%

a) Bauxite                Despatched for

and                           use in alumina

Laterite                    and aluminium   metal extraction

 

 

b) Bauxite                 Despatched for                   and  Laterite                                use other than           

alumina and aluminium metal extraction and for export

                        

                        

0.50% of London Metal Exchange aluminium

metal price chargeable on the contained metal in ore produced

 

25%

Brown Ilmenite (Leucoxene),

Ilmenite, Rutile and Zircon

2%

Cadmium

15%

Calcite

15%

China clay/Kaolin (including ball

clay and white shale, white clay)

a)  Crude

b)  Processed (including washed)

 

 

8%

10%

Chromite

10%

Columbite-tantalite

10%

Copper

4.2% of London Metal Exchange copper metal price chargeable on the contained copper metal in ore produced

Diamond

11.5%

Dolomite

Rs.63

Felspar

12%

Fire Clay

(Including plastic, pipe, lithomargic and natural pozzolanic clay)

12%

Fluorspar (also called fluorite)

6.5%

Garnet

a)                           Abrasive

b)                           Gem

 

3%

10%

Gold

a)                                        Primary

 

 

 

b)                                       By-product gold

 

2% of `London Price' of primary gold metal contained in gold ore produced.

 

3.3% of `London Price' on by-product gold metal actually produced.

Graphite

a)              with 40% or more fixed carbon

b)             with less than 40% fixed carbon

 

 2%

12%

 

Gypsum

20%

Iron Ore: Lumps, fines and concentrates all grade

10%

Lead

(a) Contained lead metal in ore produced

 

 

 

 

(b) Contained lead metal in concentrate produced

 

7% of London Metal Exchange lead metal price chargeable on the contained lead metal in ore produced.

 

12.7% of London Metal Exchange lead metal price chargeable on the contained lead metal in concentrate produced

Limestone

a)  L.D.Grade (less than 1.5 per cent silica content)

 

b)  Others

 

Rs.72

 

 

Rs.63

Lime kankar

Rs.63

Limeshell

Rs.63

Magnesite

3%

Manganese Ore

a)  Ore of all grade

b)  Concentrates

 

4.2%

1.4%

Mica (crude, waste and scrap)

4%

Monazite

Rs.125

Nickel

0.12% of London Metal Exchange nickel metal price chargeable on the contained nickel metal in ore produced

Ochre

Rs.20

Pyrites

2%

Pyrophyllite

20%

Quartz

15%

Ruby

10%

Silica sand, Moulding sand and Quartzite

8%

Sand for Stowing

Rs.3

Selenite

10%

Sillimanite

2.5%

Silver

a)  By-product

 

 

 

 

b)  Primary Silver

 

7% of London  price on by product silver metal actually produced

 

5% of London price chargeable on the contained silver metal in ore produced

Slate

Rs.45

Talc, Steatite and Soapstone

18%

Tin

7.5% of London Metal Exchange tin metal price chargeable on the contained tin metal in ore produced

Tungsten

Rs.20 (per unit per cent of contained WO3  per tonne of ore and on pro-rata basis)

Uranium

2% of annual compensation amount received by M/s. Uranium Corporation of India Limited, to be apportioned among the States on the basis of data provided by DAE.

Vanadium

20%

Vermiculite

3%

Wollastonite

12%

Zinc

(a)           contained zinc metal in ore produced

 

 

 

 

 

(b)           contained as zinc metal in concentrate produced

 

 

 

8% of London Metal Exchange zinc metal price on ad valorem basis chargeable on contained zinc metal in ore produced

 

8.4% of London Metal Exchange zinc metal price on ad valorem basis chargeable on contained zinc metal in concentrate produced

All other major minerals including Agate, Clay(Others), Chalk, Corundum, Diaspore, Dunite, Felsite, Fuschite, Kyanite, Quartzite, Jasper, Perlite, Rock Salt, Shale, Pyroxenite,  etc.

10%

 

Royalty for Coal (including Lignite)

A.    Coal produced in all the States and Union territories except the State of West Bengal.

(1)   Royalty on Coal:

The rate of royalty on coal shall be @ 14% (Fourteen percent) ad-valorem on price of coal, as reflected in the invoice, excluding taxes, levies and other charges.

 

(2)   Royalty on Lignite:

The rate of royalty on lignite shall be @ 6% (Six percent) ad-valorem on transfer price of lignite, as  ratified by the Central Electricity Regulatory Commission (CERC) and for lignite sold to other consumers, the royalty shall be @ 6% (Six percent) ad valorem on the price of lignite as reflected in the invoice, excluding taxes, levies and other charges.

 

(3)   Royalty on coal and lignite produced from captive mines:

For calculating royalty on coal and lignite produced from captive mines, the price of coal and lignite shall mean the basic pithead price of Run of Mine (ROM) coal and lignite, as notified by the Coal India Ltd. / Singareni Collieries Company Ltd. / Neyveli Lignite Corporation, for similar Gross Calorific Value (GCV) of coal or lignite for the mines, nearest to that captive mine;

     

Provided that for the coal and lignite produced from the coal and lignite blocks, allocated under the Government dispensation route for commercial use, the respective ad-valorem royalty shall be applicable on the price notified by the respective State Governments.

 

(4)   Adjustment of royalty against levying of cess:

For the States other than West Bengal, for the levy of cess or other taxes specific to coal bearing lands, the royalty allowed shall be adjusted for the local cesses or such taxes, so as to limit the overall revenue yield.

 

B.     Coal produced in the State of West Bengal.

Group

Quality of Coal

Royalty on coal in Rupees per tonne

Group – I

Steel Gr-I

Seven rupees only per tonne

Steel Gr.II

Washery-I

Direct Feed

Group – II

Washery-II

Six rupees and fifty paise only per tonne

Washery-III

Semi Coking  Gr-I

Semi Coking  Gr-II

Non-Coking Coal having GCV(Kcal/kg) range of 6701 and above

Non-Coking Coal having GCV(Kcal/kg) range of 6401-6700)

Non-Coking Coal having GCV(Kcal/kg) range of 6101-6400

Group-III

Washery-IV

Five rupees and fifty paise only per tonne

Non-Coking Coal having GCV(Kcal/kg) range of 5801-6100

Non-Coking Coal having GCV(Kcal/kg) range of 5501-5800

Non-Coking Coal having GCV(Kcal/kg) range of 5201-5500

Group-IV

Non-Coking Coal having GCV(Kcal/kg) range of 4901-5200

Four rupees and thirty paise only per tonne

Non-Coking Coal having GCV(Kcal/kg) range of 4601-4900

Non-Coking Coal having GCV(Kcal/kg) range of 4301-4600

Group-V

Non-Coking Coal having GCV(Kcal/kg) range of 4001-4300

Two rupees and fifty paise only per tonne

Non-Coking Coal having GCV(Kcal/kg) range of 3701-4000

Non-Coking Coal having GCV(Kcal/kg) range of 3401-3700

Non-Coking Coal having GCV(Kcal/kg) range of 3101-3400

Non-Coking Coal having GCV =<3100

 

 

Details of royalty collected by the State Governments for major minerals are: 

 

Royalty accrual for 2009-10 till 2012-13 for major minerals other than coal, lignite and sand for stowing

 

(Value in Rs. Lakhs)

 

S. No.

States

2009-10

2010-11

2011-12

2012-13

1

Andhra Pradesh

37038.00

38192.00

44871.00

51732.00

2

Assam

234.00

181

187

101

3

Chhattisgarh

47439.75

119405.37

134630.7

121155.5

4

Goa

28591.38

95911.68

94273.81

32802.17

5

Gujarat

19290.66

19389.89

22337.43

27039.66

6

Haryana

NA

8.44

NA

NA

7

Himachal Pradesh

4797.89

NA

9008.03

NA

8

Jharkhand

20187.75

44029.54

64591.23

69876.46

9

Karnataka

43311.09

70850.91

35271.52

14674.37

10

Kerala

881.27

942.38

1116.72

1232.77

11

Madhya Pradesh

35149.00

32455.57

37577

37092

12

Maharashtra

8383.61

13273.33

13638.91

14451

13

Meghalaya

726.99

1309.18

NA

NA

14

Odisha

89443.95

218975.89

324954.1

NA

15

Rajasthan

98730.85

119467.52

130016.3

146784.9

16

Tamil Nadu

13056.53

14523.88

22081.14

NA

 

Total

447262.72

788916.58

934554.89

516941.83

 

NA: not available

Source: Indian Bureau of Mines

 

Data on collection by State Governments on dead rent on minerals, royalty on minor minerals, and other taxes on mining and minerals like cess, stamp duty, land tax etc. are not centrally maintained.


            The Government set up a Study Group on 13.9.2011 for review and revision of rates of royalty and dead rent for major minerals (other than coal, lignite and sand for stowing). The Study Group submitted its report on 28.6.2013 which is under consideration. 

 

This information was given by the Minister of Mines, Shri Dinsha Patel in a written reply to a question in Lok Sabha.

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