Rise in mineral royalties to states: Parliament statement

14 Aug 2023 CW Team

Over the years, there has been a consistent rise in mineral royalties allocated to states, according to a statement made in Parliament on Wednesday.

In a written response to Lok Sabha, Pralhad Joshi, the Union Minister of Coal, Mines, and Parliamentary Affairs, provided year-wise details from 2016-17 to 2021-22 (Provisional).

The data showcased a progression from Rs 96.95 billion in 2016-17 to Rs 388.40 billion in 2021-22.

The Mines and Minerals (Development and Regulation) Act, of 1957, mandates mining lease holders to pay royalties for significant minerals extracted or utilized, based on rates outlined in the Second Schedule.

Additionally, an amendment to the MMDR Act on January 12, 2015, introduced an auction-based system for mineral concessions to enhance transparency and ensure states receive equitable revenue via auction premiums and royalty earnings from natural resource allocation.

The operationalization of auctioned mines has led to a notable revenue increase for state governments in the mineral sector, the minister noted.

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