New Delhi: 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."
Bureau Report
First Published: Friday, September 25, 2009, 17:23