The Central Government has decided to hike the royalty rate for iron-ore from 10 per cent to 15 per cent of the selling price.
Subsequently, significant increase in annual mineral revenue collection is now expected in Chhattisgarh. The decision will benefit other iron-ore producing States as well, officials stated.About two months back, Chief Minister Raman Singh had a meeting with Prime Minister Narendra Modi during his New Delhi visit.
Singh had, at that time, requested Modi to decide the rate of mineral royalty on the basis of their market value and also to revise the iron-ore royalty rate in proportion to its present market price, in the larger interests of iron-ore producing States like Chhattisgarh.In the recently held Central Cabinet Meeting chaired by Prime Minister in New Delhi, the rate of iron-ore royalty has been increased from 10 per cent to 15 per cent.
On Thursday, Director, Geology and Mining Anbalgan P informed that in the last financial year 2013-14, the State Government collected total mineral revenue of Rs958.57 crore from iron-ore.In this duration, Chhattisgarh had average royalty collection of Rs300 per ton. From September 2014 in financial year 2014-15, the rate of royalty shall be increased by 5 per cent and hence, the rate of average royalty collection will reach nearly Rs450 per ton.
It has been estimated that with the hike in royalty rate, the revenue collection on iron-ore supply will reach nearly Rs1,600 crore in financial year 2014-15 and in year 2015-16, it will further increase to Rs 1800 crore.Compared to the collection of previous financial year 2013-14, the iron-ore revenue collection this year is expected to increase by Rs642 crore.According to Anbalgan P., the State Government had recovered total revenue of Rs3,235.42 crore from various kinds of minerals in the previous financial year 2013-14.
As a result of Central Government’s decision to hike iron-ore royalty rates on request of Chief Minister Raman Singh, the Chhattisgarh Government is expecting total mineral revenue collection of Rs4,100 crore in the current financial year 2014-15. It is noteworthy that iron-ore is mainly extracted in hilly area of Bailadila in South Bastar (Dantewada) district by National Mineral Development Corporation (NMDC).
The Steel Authority of India limited (SAIl), a public undertaking of Central Government, operates the iron-ore mines in Dallirajhara for the Bhilai Steel Plant.