Lok Sabha Question No. 1215 (UNSTARRED), answered on 2016-07-25
Subject: Mining Lease Fee/Royalty
Ministry: MINES
Asked by: GEETHA KOTHAPALLI

## GOVERNMENT OF INDIA

## MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 1215 TO BE ANSWERED ON 25 th  JULY 2016 MINING LEASE FEE/ROYALTY

## 1215.  SHRIMATI KOTHAPALLI GEETHA:

Will the Minister of MINES be pleased to state:

- (a) whether  the  Government  proposes  to  keep  the  transfer  fee  or  additional royalties to be paid by an acquirer for remaining period of a mining lease at a  reasonable  level  to  spur  mergers  and  acquisitions  in  the  stressed minerals and commodities sectors, if so, the details thereof;
- (b) whether the mining industry is reportedly in deep trouble, if so, the details thereof and the reasons therefor along with the reaction of the Government thereto; and
- (c) the remedial measures taken/proposed to be taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINES, POWER, COAL AND NEW & RENEWABLE ENERGY (SHRI PIYUSH GOYAL)

(a):  The  Minerals  (Transfer  of  Mining  Lease  Granted  Otherwise  than  through Auction  for  Captive  Purpose)  Rules,  2016  have  been  published  in  the  Official Gazette vide notification No. GSR 560(E) dated 30.05.2016. The transfer charges payable  by  the  transferee  shall  be  an  amount  equal  to  eighty  per  cent.  of  the royalty  paid  in  terms  of  Second  Schedule  to  the  Act  payable  for  the  remaining period of the transferred mining lease which was granted otherwise than through auction for captive purpose.

(b) to (c):  Output of the mining sector had fallen sharply in the year 2014-15 due to  various  reasons,  including  the  closing  down  of  several  mines  due  to  court orders, non-renewal of expired mining leases etc. The Government took remedial measures  through  the Mines  and  Minerals (Development  and  Regulation) Amendment  Act,  2015,  including  the  insertion  of  transition  provisions    for extension of existing leases to obviate disruptions in supply of ore and to ensure regular supply of raw material to the industry;

As a result, the output of the mining sector, in quantity terms has registered a significant increase in the year 2015-16. The following table gives the increase in output of the major minerals produced in the country in year 2015-16 compared to the production achieved in 2014-15.

|         |              | Quantity (Unit in tonnes)   | Quantity (Unit in tonnes)   |                        |
|---------|--------------|-----------------------------|-----------------------------|------------------------|
| Sr. No. | Minerals     | 2014-15                     | 2015-16                     | Percentage(%) increase |
| 1       | Iron ore     | 128910000                   | 155810000                   | 21                     |
| 2       | Bauxite      | 22226062                    | 28126288                    | 27                     |
| 3       | Chromite     | 2163942                     | 2881148                     | 33                     |
| 4       | Copper conc. | 107541                      | 140180                      | 30                     |
| 5.      | Lead Conc.   | 197668                      | 261858                      | 32                     |

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