The recent approval given by the Union Cabinet to revised royalty rates for major minerals like iron ore, will lead to states like Odisha, Chhattisgarh, Karnataka, Goa and Jharkhand becoming the biggest beneficiaries, as their annual royalty collection will go up by 50 per cent.
Mineral-rich Odisha will be the biggest beneficiary among the aforementioned states as after the revision of royalty rates on iron ore and other minerals, its annual collection is estimated to go up by 50.27 per cent to Rs 4,880 crore.
The rise in annual royalty collection from around Rs 3,250 crore in 2011-12 would help it to take up more development projects, a senior official in the Centre said.
leading in production of iron ore and other minerals in the country, Odisha’s royalty collection is also expected to be more than two and half times compared to Chhattisgarh, the second biggest gainer, official sources said.
Chhattisgarh’s royalty collection is likely to swell by 46.77 per cent to Rs 1,976 crore from Rs 1,346 crore as in FY12. Goa would get Rs 1,414 crore from Rs 943 crore earlier, clocking a 49.99 per cent growth.
Karnataka, where mining activity was banned in 2011, had collected around Rs 353 crore royalty in 2011-12. This may go up by 45.57 per cent with the revision of the royalty rates to Rs 513.44 crore.
Rajasthan’s royalty collection is also set to go up to Rs 1,533 crore from Rs 1,300 crore. Madhya Pradesh may also show an estimated 25.65 per cent rise in collection to Rs 472 crore from Rs 376 crore earlier.
It is estimated that the royalty collection of the States would increase up by 41.12 per cent to Rs 12,274 crore per annum from Rs 9,406 crore in 2011-12.
Earlier this week, the Government approved the revision of rates of royalty and dead rent of all major minerals other than minor minerals, coal, lignite and sand for stowing, as per provisions of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.