Ministry of Mines notes there has been steady increase in royalty on minerals to states over years

Ministry of Mines stated in a latest update that there has been a steady increase in royalty on minerals to states over the years. As per Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957), every mining lease holder needs to pay royalty for major minerals removed or consumed as per the royalty rates specified in the Second Schedule of the MMDR Act, 1957. The rates of royalty on minerals are revised from time to time under sub-section (3) of Section 9 of the MMDR Act, 1957. The proviso to Section 9(3) stipulates that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years. It does not stipulate that royalty has to be revised every three years. Royalty rates for major minerals were revised on 01.09.2014. Further, the royalty rate for mineral sillimanite was revised on 15.03.2022. The total Royalty accrual in FY17 were Rs 9696 crore and it soared to Rs 38840 crore in FY22.

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