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Government of India
Ministry of Mines
16-March-2015 16:20 IST
Revision of Royalty Rates of Minerals

            The Government has revised the rates of royalty of minerals, including bauxite, chrome and manganese on 1st September, 2014. The revised rates of royalty of minerals (excluding coal, lignite and sand for stowing) are given in ANNEXURE-I.

 

            As a result of the revised rates of royalty, the revenue from royalty from non-coal minerals to state governments (including the states of Karnataka, Andhra Pradesh, Odisha and Jharkhand) is likely to increase from Rs. 9406.45 crore (at the year 2011-12 production level) to Rs. 13274.18 crore, an increase of 41%. The estimated state-wise increase in royalty collections is given at ANNEXURE-II.

 

            Since the revised rates of royalty are effective from 1st September, 2014, there will be no arrears on account of royalty due to state governments for the period prior to 01.09.2014. Realization of increased royalty as a result of the revised rates of royalty will accrue to state governments only after 01.09.2014.  

 


Annexure-I

 

 

Rates of Royalty in Respect of Minerals (excluding Coal, Lignite and Sand for Stowing)

 

1.

Apatite and Rock Phosphate:

(i) Apatite

 

 

(ii) Rock Phosphate  

(a) Above 25% P2O5

 

(b) Upto 25% P2O5

 

Five per cent. of average sale price on ad valorem basis.

 

Twelve and half per cent. of average sale price on ad valorem basis.

 

Six per cent. of average sale price on ad valorem basis.

 

2.

Asbestos:

(i) Chrysotile

 

(ii) Amphibole

 

Eight Hundred and Eighty rupees per tonne.

 

Fifteen per cent. of average sale price on ad valorem basis.

 

3.

Barytes:

Six and half per cent. of average sale price on ad valorem basis.

 

4.

Bauxite and Laterite:

 

(a)   Metallurgical Grade:

Zero point six zero per cent. of London Metal Exchange Aluminium metal price chargeable on the contained aluminum metal in ore produced for those dispatched for use in alumina and aluminium metal extraction.

 

(b)   Non Metallurgical Grade:

Twenty five per cent. of average sale price on ad valorem basis for those dispatched for use other than alumina & aluminium metal extraction.

 

5.

Brown Ilmenite (Leucoxene),

Ilmenite, Rutile and Zircon:

Two per cent. of average sale price on ad valorem basis.

 

6.

Cadmium:

Fifteen per cent. of average sale price on ad valorem basis.

 

7.

Calcite:

Fifteen per cent. of average sale price on ad valorem basis.

 

8.

China clay or Kaolin:

(including ball clay and white shale, white clay)

(i) Crude

 

(ii) Processed

     (including washed)

 

 

 

 

Eight per cent. of average sale price on ad valorem basis.

 

Twelve per cent. of average sale price on ad valorem basis.

 

9.

Clay others:

Twenty rupees per tonne.

 

10.

Coal (including Lignite):

*

 

11.

Chromite:

Fifteen per cent. of average sale price on ad valorem basis.

 

12.

Columbite-tantalite:

Ten per cent. of average sale price on ad valorem basis.

 

13.

Copper:

Four point six two per cent. of London Metal Exchange Copper metal price chargeable on the contained copper metal in ore produced.

 

14.

Diamond:

Eleven point five per cent. of average sale price on ad valorem basis.

 

15.

Dolomite:

Seventy-five rupees per tonne.

 

16.

Dunite:

Thirty rupees per tonne.

 

17.

Felspar:

Fifteen per cent. of average sale price on ad valorem basis.

 

18.

Fire Clay:

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

 

Twelve per cent. of average sale price on ad valorem basis.

 

19.

Fluorspar:

(also called fluorite)

Eight per cent. of average sale price on ad valorem basis.

 

20.

Garnet:

(i) Abrasive

 

 

(ii) Gem

 

Four per cent. of average sale price on ad valorem basis.

 

Ten per cent. of average sale price on ad valorem basis.

 

21.

Gold:

(i) Primary

 

 

 

 

(ii) By-product gold

 

 

Four per cent. of London Bullion Market Association Price (commonly referred to as London Price) chargeable on the gold metal in ore produced.

 

Three point three per cent. of   London Bullion Market Association Price (commonly referred to as London Price) chargeable on the by-product gold metal actually produced.

 

 

22.

Graphite:

(i) With 80 per cent. or more fixed carbon

 

(ii) With 40 per cent. or more fixed carbon but less than 80 per cent. fixed carbon

 

(iii) With 20 per cent. or more fixed carbon but less than 40 per cent. fixed carbon

 

(iv) With less than 20 per cent. fixed carbon

 

 

Two hundred and twenty-five rupees per tonne.

 

 

One hundred and fifty rupees per tonne.

 

 

 

Sixty-five rupees per tonne.

 

 

 

Twenty-five rupees per tonne.

 

23.

Gypsum:

Twenty per cent. of average sale price on ad valorem basis.

 

24.

Iron Ore:

(CLO, Lumps, fines and concentrates all grades)

 

Fifteen per cent. of average sale price on ad valorem basis.

25.

Lead:

(a)      Eight point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in ore produced.

 

(b)      Fourteen point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in the concentrate produced.

 

26.

Limestone:

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

 

(ii) Others

 

 

Ninety rupees per tonne.

 

 

Eighty rupees per tonne.

27.

Lime kankar:

Eighty rupees per tonne.

 

28.

Limeshell:

Eighty rupees per tonne.

 

29.

Magnesite:

Three per cent. of average sale price on ad valorem basis.

 

30.

Manganese Ore:

(i) Ore of all grade

 

 

(ii) Concentrates

 

Five per cent. of average sale price on ad valorem basis.

 

One point seven per cent. of average sale price on ad valorem basis.

 

31.

Marl:

Sixty rupees per tonne.

 

32.

Crude Mica, waste mica and scrap mica:

Four per cent. of average sale price on ad valorem basis.

 

33.

Monazite:

One hundred and twenty-five rupees per tonne.

 

 

34.

Nickel:

Zero point one two per cent. of London Metal Exchange Nickel metal price chargeable on the contained nickel metal in ore produced.

 

35.

Ochre:

Twenty-four rupees per tonne.

 

36.

Pyrites:

Two per cent. of average sale price on ad valorem basis.

 

37.

Pyrophyllite:

Twenty per cent. of average sale price on ad valorem basis.

 

38.

Quartz:

Fifteen per cent. of average sale price on ad valorem basis.

 

39.

Ruby:

Ten per cent. of average sale price on ad valorem basis.

 

40.

Sand (others):

Twenty rupees per tonne.

 

41.

Sand for stowing:

**

 

42.

Shale:

Sixty rupees per tonne.

 

43.

Silica sand and moulding sand and Quartzite:

Ten per cent. of average sale price on ad valorem basis.

 

44.

Sillimanite:

Two point five per cent. of average sale price on ad valorem basis.

 

45.

Silver:

(i) By-product

 

 

 

(ii) Primary Silver

 

Seven per cent. of London Metal Exchange Price chargeable on by-product silver metal actually produced.

 

Five per cent. of London Metal Exchange Silver Metal Price chargeable on the contained silver metal in ore produced.

 

46.

Slate:

Forty-five rupees per tonne.

 

47.

Talc, Steatite and Soapstone:

Eighteen per cent. of average sale price on ad valorem basis.

 

48.

Tin:

Seven point five per cent. of London Metal Exchange Tin metal price chargeable on the contained tin metal in ore produced.

 

49.

Tungsten:

Twenty rupees per unit per cent. of contained WO3 per tonne of ore and on pro rata basis.

 

50.

Uranium:

Two per cent. of annual compensation amount received by M/s. Uranium Corporation of India Ltd., to be apportioned among the States on the basis of data provided by Department of Atomic Energy.

 

51.

Vanadium:

Twenty per cent. of average sale price on ad valorem basis.

 

52.

Vermiculite:

Five per cent. of average sale price on ad valorem basis.

 

53.

Wollastonite:

Fifteen per cent. of average sale price on ad valorem basis.

 

54.

Zinc:

 

(a) Nine point five per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in ore produced.

 

(b) Ten per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in concentrate produced.

 

55.

All other minerals not herein before specified (Agate, Corundum, Diaspore, Felsite, Fuschite-Quartzite, Jasper, Kyanite, Perlite, Pyroxenite, Rock Salt, Selenite etc.)

 

Twelve per cent. of average sale price on ad valorem basis.

 

 

Annexure-ii

 

State wise increase in royalty collections

Sl. No.

Name of States

Royalty  collection at the current Rate  in the Yr 2011-12 (Rs. in '000)

Estimated Royalty  collection at the Rate proposed by Study Group (Rs. in '000)

% increase in Royalty Collection

1

Andhra Pradesh

4487100

5711188.35

27.28

2

Assam

18700

 

23746.03

26.98

3

Bihar

34594.56

43903.20

26.91

4

Chhattisgarh

13463068

19760217.39

46.77

5

Goa

9427381

14139821

49.99

6

Gujarat

2233743

3119349.18

39.65

7

Himachal

Pradesh

900803

1142291.28

26.81

8

Jammu  Kashmir

15945.40

19770.40

23.99

9

Jharkhand

6459123

9443897.74

46.21

10

Karnataka

3527152

5134430.84

45.57

11

Kerala

111672

123458.10

10.55

12

Madhya Pradesh

3757700

4721615.88

25.65

13

Maharashtra

1363891

1772978.09

29.99

14

Meghalaya

227280.33

289162.22

27.23

15

Odisha

32495405

48799240.03

50.17

16

Rajasthan

13001628

15328553.39

17.90

17

Tamil Nadu

2208114

2779807.42

25.89

18

Uttarakhand

32150.96

32152.01

0.00

19

Uttar Pradesh

299019.18

356205.78

19.12

 

Total

94064470.43

132741788.35

41.12%

 

            This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question Lok Sabha today.

 

YSK/Uma