In its second draft report, a mines ministry-appointed study group suggested hiking royalty on iron ore to 15 percent from the present 10 percent.
The proposal was made based on views taken by the group from various stakeholders including state and centre governments, companies belonging to both public and private sectors, reports indicate.
The study group would finalise the second draft report soon. The first report, which was circulated among the stakeholders in May 2012, also contained the same recommendation.
It may be recalled that the ministry set up the study group in 2011 under the chairmanship of an additional secretary.
Meanwhile, miners’ body Federation of Indian Miners Association (FIMI) said the proposed hike in royalty would have a huge cascading effect on the industry, which has already seen huge job cuts and shutting shops.
The hike in royalty rate especially for iron ore will have very high impact on mining companies and have cascading effect.
RK Sharma, Secretary General of FIMI said apart from royalty itself, there are various other duties, levies which are directly linked to the rate of royalty and will have their adverse impact.
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