India to impose 10 % ad valorem royalty on iron ore
It is reported that Indian iron ore miners will have to pay 10% of the market price of the mineral as royalty to the government as against the current practice of a fixed rate, with the India's Cabinet Committee on Economic Affairs approving the proposal.
A top mines ministry official said that besides iron ore, mining firms will also have to pay more as royalty on minerals like copper, zinc and lead, a move that will fetch about INR 4,600 crore to the exchequer.
The mines ministry official told PTI that "The CCEA has approved 10% royalty on iron ore Royalty rates on many other minerals have also been revised. A formal notification for the same is likely to be issued in a day on two."
The official added that "The government is likely to earn INR 4,629 crore from the changes in the royalty structure based on the production levels of 2007-08."
In 2007-08, the government had earned an estimated INR 2,280 crore. Last fiscal's details could not be ascertained. From iron ore alone, the government is expected to get INR 2,223 crore adding in 2007-08 iron ore contributed INR 378 crore to the coffers.
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