Lok Sabha Question No. 207 (STARRED), answered on 2022-03-16
Subject: Royalty Rates of Minerals
Ministry: MINES
Asked by: Chinta Anuradha, Chandra Sekhar Bellana

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## STARRED QUESTION NO. *207

## TO BE ANSWERED ON 16.03.2022

## ROYALTY RATES OF MINERALS

## *207. SHRIMATI CHINTA ANURADHA: SHRI CHANDRA SEKHAR BELLANA:

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 Andhra Pradesh; (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 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): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *207 REGARDING ROYALTY RATES OF MINERALS RAISED BY SHRIMATI CHINTA  ANURADHA  AND  SHRI  CHANDRA  SEKHAR  BELLANA,  HON'BLE MEMBERS OF PARLIAMENT FOR REPLY ON 16.03.2022.

(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. The rate notified are at annexure-I.

In order to examine revision of royalty rates and dead rent for minerals (other than coal, lignite, sand for stowing and minor minerals), Ministry of Mines vide order dated  09.02.2018  constituted  a  Study  Group.  The  Study  Group  submitted  its recommendations  on  25.07.2019.  Further,  a  Committee  has  been  constituted  on 06.04.2021 to formulate an index based mechanism for valuation of mineral resources and also for pricing for all statutory payments to the Government. The committee has given its first report on 31.01.2022. Ministry of Mines vide Order dated 27.10.2021 constituted  a  committee  for  reviewing  of  rates  of  royalty  of  those  minerals  where royalty is calculated on per tonne basis and the committee has submitted its report on 07.03.2022.

***

## 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                                                                  | Twelve and half per cent. of average sale price on ad valorem basis.                                                                                                                                                                      |
| a. Above 25% P2O5 b. Upto 25% P2O5                                                   | Six per cent. of average sale price on ad valorem basis.                                                                                                                                                                                  |
| 2. Asbestos:                                                                         |                                                                                                                                                                                                                                           |
| (i) Chrysotile                                                                       | Eight Hundred and Eighty rupees per tonne.                                                                                                                                                                                                |
| (ii) Amphibole                                                                       | 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 aluminium metal in ore produced for those dispatched for use in alumina and 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 | Eight per cent. of average sale price on ad valorem basis.                                                                                                                                                                                |
| (ii) Processed (including washed)                                                    | 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: 13. Copper:                                                 | Ten per cent. of average sale price on ad valorem basis. 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                                                 | 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 |
| 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 contained WO3 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:

55. All other minerals not herein before specified (Agate, Corundum, Diaspore, Felsite, Fuschite-Quartzite, Jasper, Kyanite, Perlite, Pyroxenite, Rock Salt, Selenite, etc.)

## 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.]
3. (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.
4. (b) Ten per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in concentrate produced.

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