Royalty on minerals should vary as per quality: Manohar Parrikar

Royalty on minerals should vary as per quality: Manohar Parrikar

Panaji: Goa Chief Minister Manohar Parrikar on Saturday said the royalty paid by mine owners to the government should vary as per the quality (grade) of the ore.

"The royalty should have correct parameters so that the state gets proper share. The state is getting a royalty of 10 per cent while Centre is earning 30 per cent in the form of export duty. I personally feel the royalty should not be uniform, but vary," said Parrikar, talking to reporters here.

Union Finance Minister Arun Jaitley had said in the budget speech that the royalty on minerals would be reviewed. The review is due since 2009.
"The low-grade royalty can be small but high-grade royalty has to be higher. Export duty should also be grade- wise," he said.

The Chief Minister also said that Mines and Minerals (Development and Regulation Act) would possibly be amended in the next session of the Parliament, as the Centre was currently consulting the states on the issue.
When asked if Goa government had sent any formal proposal suggesting amendments, Parrikar said, "So far no formal proposal has been sent but we are in the process of analysing the Supreme Court decision (revoking the mining ban), we will be sending suggestions about areas of our concern."

He dismissed the demand of the NGO Goa Foundation that state should take over the mines. "I can`t ask anyone to vacate. But I can`t allow the mineral extraction. As of now the mine is of the government so no one can touch it."

Though the Supreme Court recently revoked the ban on the mining in Goa, iron ore extraction is yet to resume.

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