Question : ROYALTY TO TRIBAL LAND OWNER



(a) whether the tribals are not eligible to receive royalty on mining or exploration of minerals from lands owned by them after being acquired for mining; and

(b) if so, the details thereof and the reaction of the Government thereto?

Answer given by the minister


THE MINISTER OF MINES AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION (SHRI B. K. HANDIQUE)

(a) & (b): In the federal structure of India, the State Governments are the owners of the minerals located within the boundary of the State concerned. Royalty is a payment made by the lease holder to the owners of the minerals in consideration for exploitation of mineral resources. The Royalty rates for minerals (other than minor mineral, coal, lignite and sand for stowing) are fixed by the Government of India and levied on the minerals consumed or removed from the lease area as per Section 9 of the Mines & Minerals (Development & Regulation) Act, 1957. It also provides for levying of dead rent for the area including in the mining lease, if minerals are not extracted. Royalty is not payable to the owner of the land.