New Delhi, September 25: The government is considering levying up to 10 per cent cess on royalty charged on minerals like iron ore, copper and lead that would be used to promote scientific mining practices — an idea opposed by the mining industry.
The proposal for the levy is part of a draft bill being formulated to replace the Mines and Minerals Development Regulation Act (1957), a senior ministry official told.
“The Central and State government may levy and collect a cess on major and minor minerals respectively, at a rate not exceeding 10 per cent of the royalty in such a manner as may be prescribed,” the official said.
The proceeds would go to the proposed ‘National Mineral Fund’ and ‘State Mineral Fund’ for promoting scientific management of mining and mine closure, local development and preventing illegal mining among others, the official added.
The mining industry, however, has opposed such a levy, saying it would hit hard the margins of firms which have already been asked to pay up to 10 per cent royalty on the market price of minerals such as iron ore.
Opposing such an additional levy, the president of the miners’ body FIMI, Siddarth Rungta, told, “We have to pay up to 10 per cent royalty on minerals like iron ore now.
Government should not overburden us with further levy.”
–Agencies