Lok Sabha Question No. 687 (UNSTARRED), answered on 2018-12-13
Subject: Royalty Rates of Minerals
Ministry: MINES
Asked by: KAMLA DEVI PATLE

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO.687

## TO BE ANSWERED ON 13.12.2018

## ROYALTY RATES OF MINERALS

†687. SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of MINES be pleased to state:

- (a) the details of royalty rates of various minerals at present and the year in which these rates were last revised;
- (b) whether several mineral rich States including Chhattisgarh have requested the Government to increase the existing royalty rates;
- (c) if so, the details thereof along with the reaction of the Government thereto;
- (d) the reasons for delay in revision of royalty rates; and
- (e) the time by which these rates are likely to be revised and made effective?

## ANSWER

## THE MINISTER OF STATE FOR MINES AND COAL (SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

(a):The  extant  royalty  rates  of  minerals  (other  than  coal,  lignite,  sand  for  stowing) notified vide Gazette Notification No. G.S.R. 630 (E) dated 01.09.2014, are given in Annexure .

(b)  to  (e):  Proviso  to  Section  9(3)  of  the  Mines  and  Minerals  (Development  and Regulation)  (MMDR)  Act  1957  stipulates  that  the  Central  Government  shall  not enhance the rates of royalty more than once during any period of three years. The last revision of royalty rates for major minerals was done in September, 2014. The Ministry  of  Mines,  accordingly,  vide  order  no.  9/1/2018-M.V  dated  09.02.2018  has constituted a Study Group to revise the rates of royalty and dead rent for minerals (other than coal, lignite, sand for stowing, and minor minerals).Three meetings of the Study Group, constituted for revision of rates of royalty and dead rent, have been held so far.

Twelve mineral rich States including Chhattisgarh are also member of the present Study Group.

*****

## Annexure  mentioned  in  reply  to  LokSabhaunstarred  question  number  687  for  13.12.2018 regarding 'Royalty Rates Of Minerals' asked by ShrimatiKamla Devi Paatle

## Schedule - II

The extantrates 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% P 2 O 5 (b) Upto 25% P 2 O 5              | 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. 42. | Sand for stowing: 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                                                          | Seven per cent. of London Metal Exchange Price chargeable on by-product silver metal actually produced. Five per cent. of London Metal Exchange Silver                                                                                                                             |
|         | (ii) Primary Silver Slate:                                                      | Metal Price chargeable on the contained silver metal in ore produced. Forty-five rupees per tonne.                                                                                                                                                                                 |
| 46.     |                                                                                 |                                                                                                                                                                                                                                                                                    |

|   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 WO 3 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.                                                                                                                                                                                                                                 |