The Government on Wednesday said that there is likely to be a revision in the royalty rates of minerals for the mineral producing States and the Ministry is working towards it after the announcement by Finance Minister Arun Jaitley about a possible increase in the rates in his Budget Speech.
In reply to a question raised by BJP Member Chandan Mitra about the new dates for proclamation of revision of the royalty rates, Minister of Mines Narendra Singh Tomar said that the Government is worried about the fact that it has been delayed and there has not been a revision in the royalty rates which affects the financial condition of States, but this would be done soon as already specified by Finance Minister. Mitra had said the royalty is one of the major sources of revenue for the States, especially the mineral-producing States.
Tomar, however clarified that though the annual Budget announced for an increase of royalty rates, it is not necessary that they may be done every three years. Mitra pointed that the royalty rates of minerals were last revised on August 13, 2009 and they were due for upward revision by August 12, 2012.
Mitra also shared the information with the House that Mines Ministry has recently floated a Draft Cabinet Note on Increasing Royalty of Minerals for inter-Ministerial discussion.
When asked about a possible administrative mechanism or a regulatory authority on the anvil, Tomar denied of any poprosals as of now. Rajya Sabha Members Pyari Mohan Patra and Kalpataru Das too associated with Mitra pertaining to the revision of rolaty rates.
Patra and Das alleged that the mineral producing States are becoming poorer due to Centre’s indifferent attitude towards it. Das said that the Union Government currently is not paying the royalty from the Consolidated Fund of India but by the lessees.