Lok Sabha Question No. 617 (UNSTARRED), answered on 2022-07-20
Subject: Royalty Rates of Minerals
Ministry: MINES
Asked by: Chandra Prakash Choudhary

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 617

ANSWERED ON 20.07.2022

## ROYALTY RATES OF MINERALS

617. SHRI CHANDRA PRAKASH CHOUDHARY : Will the Minister of MINES be pleased to state: (a) whether the Government has revised the royalty rates with respect to major minerals found in Jharkhand; (b) if so, the details thereof; and (c) if not, the time by which the royalty rates of the major minerals were last revised and
2. the steps taken by the Government for revision of rates of major minerals?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

(a) to (c): In exercise of the powers conferred under sub-section (3) of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957, the Central Government has  notified  the  rates  of  royalty  of  major  minerals  vide  Gazette  Notification  dated 01.09.2014 for the whole of India. The rates are also applicable to State of Jharkhand. The rate notified are at Annexure.

*****

## Second Schedule to the MMDR Act, 1957.

RATES OF ROYALTY IN RESPECT OF MINERALS AT ITEMS 1 TO 9, 11 TO 40 AND 42 TO 55

1. Apatite and Rock Phosphate:

- (i) Apatite

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

- (ii) Rock Phosphate

- a. Above 25% P2O5

- b. Upto 25% P2O5

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:
2. (i) Chrysotile
3. (ii) Amphibole
3. Barytes:
4. Bauxite and Laterite:
5. Brown Ilmenite (Leucoxene), Ilmenite, Rutile and Zircon:
6. Cadmium:
7. Calcite:
8. China clay or Kaolin: (including ball clay and white shale, white clay) (i) Crude
10. (ii) Processed (including washed)
9. Clay others:
10. Coal (including Lignite):
11. Chromite:
12. Columbite-tantalite:

Eight Hundred and Eighty rupees per tonne.

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

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

- (a) Metallurgical Grade:

Zero point six zero per cent. of London Metal Exchange Aluminium  metal  price  chargeable  on  the  contained aluminium 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 and aluminium metal extraction.

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

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

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

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

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

Twenty rupees per tonne.

*

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

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                                                                         | Four per cent. of average sale price on ad valorem basis.                                                                                                                |
| (ii) Gem                                                                             | Ten per cent. of average sale price on ad valorem basis.                                                                                                                 |
| 21. Gold: (i) Primary                                                                | Four per cent. of London Bullion Market Association Price (commonly referred to as London Price) chargeable on the gold metal in ore produced.                           |
| (ii) By-product gold                                                                 | 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                                           | Two hundred and twenty-five rupees per tonne.                                                                                                                            |
| (ii) With 40 per cent. or more fixed carbon but less than 80 per cent. fixed carbon  | One hundred and fifty rupees per tonne.                                                                                                                                  |
| (iii) With 20 per cent. or more fixed carbon but less than 40 per cent. fixed carbon | Sixty-five rupees per tonne.                                                                                                                                             |
| (iv) With less than 20 per cent. fixed carbon                                        | 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) Ninety rupees per tonne. (ii) Others 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 Five per cent. of average sale price on ad valorem basis. (ii) Concentrates 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 Seven per cent. of London Metal Exchange Price chargeable on by-product silver metal actually produced. (ii) Primary Silver 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 containedWO 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.                                                                                                                                                                                                                                 |

## Notes: -

1. *  Rates  of  royalty  in  respect  of  item  No.  10  relating  to  Coal  (including  Lignite)  as  revised vide notification number G.S.R. 349(E), dated the 10th May, 2012 read with corrigendum G.S.R. 525(E), dated the 14th June, 2012 of the Government of India in the Ministry of Coal shall remain in force until revised through a separate notification by the Ministry of Coal.
2. ** Rates of royalty in respect of item No. 41 relating to Sand for stowing revised vide notification number G.S.R. 214(E), dated the 11th April,  1997,  will  remain  in  force  until  revised  through  a separate notification by the Ministry of Coal.]