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The decision on raising royalty rates on major minerals including iron ore and bauxite would be taken soon, Steel and Mines Minister Narendra Singh Tomar said today.
"It will happen soon," Tomar told reporters on the sidelines of an event here when asked about the time-frame for the proposed revision that has been pending since 2012.
The rates of royalty revised every three years for major minerals - excluding coal, lignite and sand for stowing - were last revised in August, 2009.
Revision of these rates warrant the Cabinet nod.
The ministry has recently floated a Cabinet note for an inter-ministerial discussion proposing hiking the rate of royalty on various minerals. The proposal is to raise duty on iron ore to 15% from 10% now.
Royalty is a tax levied by the government on miners in lieu of transfer of ownership rights of mines. While the government views it as a source of revenue, industrialists look at it as part of production costs.
The current proposals are based on the recommendations of a study group set up by the UPA-II regime in 2011. There are 51 minerals prescribed in the second schedule of MMDR Act 1957 and the rates vary from mineral to mineral.
Almost all minerals including bauxite, limestone, zinc and copper would be impacted by new royalty rates.
States have been asking for a steep hike in the royalty rates for the minerals. While the royalty is collected by the states, Centre is bestowed with the power to revise them.
