Steel Ministry has proposed 15% increase
leading iron ore-producing States like Odisha, Chhattisgarh and Jharkhand have demanded a hike in the royalty rate of the raw material to up to 32 per cent from the present 10 per cent. This was informed to Parliament on Monday.
Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply in the lok Sabha that the minerals-rich States have also sought an increase in existing rates of royalty on various other minerals.
Specifically with regard to iron ore, Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Rajasthan have demanded a hike ranging from 12 per cent to 32 per cent on an ad valorem basis from the existing royalty rate of 10 per cent on the ad valorem basis, he said.
The Ministry has recently prepared a Cabinet note for an inter-Ministerial discussion proposing a hike the rate of royalty on iron ore to 15 per cent. The rate is revised every three years. The last revision, however, was made in 2009.
Sai said his Ministry forms Study Groups at regular intervals to study the demands made for revision the rates of royalty on minerals and dead rent to make recommendations. The most recent Study Group report was received on June 28, 2013. But no decision has been taken by the Government on the proposed rates, he said.
To another question, he said that although steel production in the country has been continuously increasing during the last three years, the rate of growth in production was declining due to various factors such as the economic slowdown.
Sai said substantial manufacturing facilities for steel plant equipments are located in various parts of the country in the private sector. In addition, Danieli C, Italy has set up a manufacturing facility for steel equipments at Sri city near Chennai and SMM, Germany is also setting up a manufacturing facility near Bhubaneswar, he said.