Iron ore miners will have to pay 10 per cent of the market price of the mineral as royalty to the government as against the current practice of a fixed rate, with the Cabinet Committee on Economic Affairs approving the proposal, a top top mines ministry official said.
Besides iron ore, mining firms will also have to pay more as royalty on minerals like copper, zinc and lead, a move that will fetch about Rs 4,600 crore to the exchequer, he said.
"The CCEA has approved 10 per cent royalty on iron ore Royalty rates on many other minerals have also been revised. A formal notification for the same is likely to be issued in a day on two," a top mines ministry official told PTI.
"The government is likely to earn Rs 4,629 crore from the changes in the royalty structure based on the production levels of 2007-08," he said. In 2007-08, the government had earned an estimated Rs 2,280 crore. Last fiscal's details could not be ascertained.
From iron ore alone, the government is expected to get Rs 2,223 crore, he said, adding in 2007-08, iron ore contributed Rs 378 crore to the coffers. Royalty is the amount paid by companies to the state governments for mining the mineral.
Source: The Hindu
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