Monday, June 22, 2009

India Plans Market-Linked Iron Ore Royalty Rates

India plans to introduce market-linked royalty rates on iron ore to replace the current fixed-rate regime, Mines Minister B.K. Handique said on Monday
"We also embark on revision of royalty rates on ad valorem basis," he told reporters at a government media conference to outline its early agenda following its re-election last month.

Earlier this month, a committee of secretaries favoured the proposal of a 10 percent ad valorem (duty on value) royalty on the market price of iron ore, a basic input for steel making.

Currently, the royalty for iron ore is fixed at up to 27 rupees ($0.56) a tonne, depending on variety and grade.

A report in the Times of India on Monday said the final call on the issue would be taken soon by the federal cabinet.

Source: Reuters

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