Lok Sabha Question No. 2335 (UNSTARRED), answered on 2023-03-15
Subject: Rates of Royalty and Dead Rents
Ministry: MINES
Asked by: Ramdas Chandrabhanji Tadas

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2335

ANSWERED ON 15.03.2023

## RATES OF ROYALTY AND DEAD RENTS

†2335. SHRI RAMDAS C. TADAS:

Will the Minister of MINES be pleased to state:

- (a) whether the Government has reviewed and revised the rates of royalty and dead rents of the mines;
- (b) if so, whether there is any effect on the revenue generation in the country due to difference in the rates of royalty and dead rent;
- (c) if so, the details thereof; and
- (d) the corrective measures proposed to be taken by the Government in this regard?

## ANSWER

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

- (a) to (d): The rates of royalty and dead rent on minerals are revised from time to time under sub-section (3) of Section 9 of the Mines and Minerals (Development and Regulation)  Act,  1957  (MMDR  Act,  1957).  Royalty  rates  and  dead  rents  were  last revised on 01.09.2014.

The State  wise  royalty  accrual  of  major  minerals  from  2016-17  to  2019-20  shows that the royalty accrual to the State Governments has increased over the years.

| Year                           | 2016-17   | 2017-18   | 2018-19   | 2019-20   |
|--------------------------------|-----------|-----------|-----------|-----------|
| Royalty accrual (in Rs. Crore) | 9,695.88  | 12,386.16 | 17,169.92 | 16,677.04 |

Further, through amendment in the MMDR Act on 12.01.2015, auction regime was introduced for grant of mineral concessions to improve transparency and to ensure that State Governments get a fair share of revenue in terms of auction premium in addition to royalty revenue in allocation of natural resources.

Due to operationalization of auctioned mines, the revenue to the State Governments has  increased  considerably.  For  the  States  where  auctioned  mines  have  been operationalized,  the  comparison  between  royalty  collection  from  all  working  mines and auction premium from the auctioned mines for FY 2021-22 is given below:

| State          | Total Number of Working Mines   | Out of (a), number of auctioned Working Mines   | Total Royalty collection from all the Working Mines (in Rs. Crore)   | Total Auction premium from the Auctioned Mines (in Rs. Crore)   |
|----------------|---------------------------------|-------------------------------------------------|----------------------------------------------------------------------|-----------------------------------------------------------------|
|                | (a)                             | (b)                                             | (c)                                                                  | (d)                                                             |
| Odisha         | 140                             | 23                                              | 20606.84                                                             | 19258.57                                                        |
| Karnataka      | 131                             | 11                                              | 649.48                                                               | 1883.88                                                         |
| Andhra Pradesh | 134                             | 2                                               | 11.32                                                                | 5.59                                                            |

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