Govt working on DMF rules; will decide on royalties: Tomar

The Centre is in the process of formulating guidelines for District Mineral Foundation (DMF) and will decide on royalties to be paid for different minerals, Steel Minister Narendra Singh Tomar said here today.
"Existing miners may have to pay up (to) 100 per cent of royalties to DMF under the amended Mines and Minerals Development and Regulation (MMDR) Act, while the mines that will be auctioned have to pay no more than a third of the royalties," Tomar told reporters on the sidelines of a conference of the members of the steel industry.
Currently, miners pay royalties to respective state governments depending upon the type of minerals.

However, he added that the DMF rules are still being formulated, and the Centre will decide on the royalties to be paid for different minerals. "The Central government will decide the royalties, as it is still under consideration," the minister said.
He said while these rules will be applicable to all major minerals, respective states will decide about minor minerals.
"Major minerals would include iron ore, bauxite, zinc, copper among others," he added.

Speaking to the steel industry members at a conference the minister said the government and industry have agreed to work together in research and development.
An initiative called 'Steel Research Technology Mission for India' has been launched, through which R&D in the sector will be increased, he said.

"We need research and work in areas where we don't have the technology," Tomar said while calling for a healthy exchange of ideas among experts of the sector.
Discussing the importance of steel for the mining industry, through the amended MMDR Act, the government has tried to reduce delays in obtaining mining leases.
Approvals can be obtained at the state level when possible, and there is no need to re-apply to Central government.
Meanwhile, speaking on the global steel scenario, Rakesh Singh, Steel Secretary, cautioned that globally the industry is facing tough times with slow growth and significantly excess capacity.