Question : RATES OF ROYALTY



(a) whether the Government of Gujarat has approached the Union Government to streamline the existing system of fixing the rates of royalty;

(b) if so, the details thereof;

(c) whether the Government propose to set up a statutory body of experts to revise the rates of royalty;

(d) if so, whether the proposals of the Gujarat Government has been considered by the expert body;

(e) if so, the decision taken thereon; and

(f) if not, the reasons therefor?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF MINES (SHRI JAYSINGRAO GAIKWAD PATIL)

(a) to (b): Yes, Sir. Conventionally a Study Group is constituted in the Department/Ministry concerned to review the rates of royalty on major minerals which comprises representatives of State Governments, the Industry, the Technical Institutions and other concerned Ministries/Departments. The Study Group makes recommendations about the rates of royalty after holding broad-based consultations which are considered by the Government and final revision of the rates of royalty is notified in the Gazette. Ministry of Mines had set up a Study Group vide office memorandum dated 5.10.1998. Study Group submitted its recommendation in March,2000. On the basis of the recommendations, the rates of royalty for major minerals(other than coal, lignite and sand for stowing ) have been notified w.e.f. 12.9.2000. As per Sec.9(3) of the Mines and Minerals(Development & Regulation) Act,1957, revision of royalty for major minerals(other than coal, lignite & sand for stowing) is not due before 12.9.2003.

( c) to (f ) : There is no proposal to set up any statutory body of experts for revision of royalty rates.