New Delhi: Expressing its intention against revision of royalty on iron, bauxite and chromite the Union government Wednesday suggested state governments to bring more mines for auction to earn revenue.
Responding to a question posed by Biju Janata Dal (BJD) MP Ramesh Majhi regarding revision of mineral royalty in Lok Sabha, Union Coal and Mines Minister Pralhad Joshi said that mines are the biggest source of revenue in the entire world. “These are getting costlier as we are charging 42-45 per cent tax on the mines,” he said.
“The Central government shall not enhance the rates of royalty more than once during any period of three years. However, there is no provision in the MMDR Act which mandates the Central government to revise the rates of royalty for major minerals immediately after completion of three years of last revision of rates,” Joshi said in the House.
The Union minister also said that the ministry had constituted a study group in this regard. He said that the study group has proposed reduction in royalty in auctioned mines and maintenance of the same in non-auctioned mines.
The Union minister also praised the Odisha government for its work in the mineral sector. “You have also done very well. You are from Odisha. Your government has done well. In terms of auction and also in the overall Mineral Sector, they have done well, and they are receiving a very good amount of revenue out of that,” Joshi said.
Earlier, Majhi had asked the Union minister as to when would the government decide on royalty rate. He had said in the House that rates were revised last in 2014. “It’s been seven years, we have been facing losses due to non-revision of royalty rates,” Majhi had said in the house.