Monday, August 29, 2011


Revision of Coal and Non-Coal Mineral Royalty

In terms of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), royalty rates for minerals can be revised upward only once in three years. Accordingly, the royalty rates for coal minerals were last revised on 1.8.2007, and in case of non-coal major minerals (excluding coal, lignite and sand for stowing) the royalty rates were revised on 13.8.2009. In case of coal minerals, the Ministry of Coal has constituted a Study Group for further revision of rates of royalty for coal minerals.

Revision of rates of royalty for minerals have been undertaken after due process of consultation with stakeholders and the revised rates of royalty are applicable only from the date of notification by which the States are benefitting from the revised royalty collections. There is no provision in the MMDR Act for compensation to State Governments in matters pertaining royalty.

This information was given by the Minister of State for Mines, Shri Dinsha Patel in a written reply to a question in the Rajya Sabha today.

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