(a) whether the Government has any proposal to impose new taxes on the
mining companies so that they can share a part of their profits for local
development;
(b) if so, the details thereof;
(c) whether the mineral-rich States including Odisha have raised similar
demands recently;
(d) if so, the details thereof; and
(e) the action taken by the Government thereon?
THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINES (SHRI DINSHA PATEL)
(a) and (b) : As per the draft Mines and Mineral (Development and Regulation)
Bill, 2011 (MMDR Bill) introduced in Lok Sabha on 12th December, 2011, the
Central Government may levy and collect a cess not exceeding two and one half
percent on major minerals on the basis of customs and excise duty. The draft
Bill further provides that State Governments may levy and collect a cess on
major minerals and minor minerals not exceeding ten percent of the royalty.
The draft Bill also provides that ail mining lease holders shall pay annually
into a District Mineral Foundation set up at District level for local development-
i. a sum equivalent to royalty in case of major minerals (other than
coal)
ii. a sum equivalent to 26% of profit in case of coal minerals; and
iii. in case of minor minerals a sum prescribed by the State Government.
(c) to (e) : The State Governments of Chhattisgarh and Odisha had requested
that mining law should provide for setting apart amounts expressed in terms of
multiples of royalty for local development. The draft MMDR Bill, 2011 suitably
provides for addressing this concern of the State Government.