By Correspondent
NEW DELHI/BHUBANESWAR: Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha on Monday said, in exercise of the powers conferred under sub-section (3) of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957, the Central Government notified the rates of royalty vide Gazette Notification dated 01.09.2014 and royalty rates prior to 2014 were notified vide Gazette Notification dated 13.08.2009. The current rates of royalty on iron ore, chromite, manganese ore, bauxite & limestone and the rates prior to the revision in 2014 are given at Annexure.
In order to evaluate the revision of royalty rates and dead rent for minerals (other than coal, lignite, sand for stowing and minor minerals), the Ministry of Mines vide order dated 09.02.2018 has constituted a Study Group. The Study Group submitted its final recommendation. Meanwhile, it has been decided to constitute a committee to formulate an index based mechanism for valuation of mineral resources and also for pricing for all statutory payments to the Government.
Accordingly, Ministry of Mines vide Order dated 06.04.2021 has constituted a Committee for developing a National Mineral Index (NMI) for valuation of mineral resources, determination of value for auction of mineral concessions and statutory payments for future auctions. Also, Ministry of Mines vide Order dated 27.10.2021 has constituted another committee for reviewing of rates of royalty of those minerals where royalty is calculated on tonnage basis.
Government has taken following actions to check the ensure misuse of District Mineral Foundation Trust Fund which is for welfare of people and areas affected by mining related activities:
i. To ensure effective implementation of the PMKKKY scheme in transforming the living standards / social upliftment of people and development of areas affected by the Mining related operations, a 2 – tier administrative set up for DMF consisting of Governing Council and Managing Committee has been proposed in the Model Trust Deed circulate by the Central Government. Accordingly, most of the States have included in State DMF Rules an administrative set up consisting of a two-tier mechanism for DMF.
ii. As per PMKKKY guidelines, the accounts of the DMF shall be audited every year by the Chartered Accountant appointed by the DMF, or in such other manner as the Government may specify, and the report thereof shall be placed in the public domain. Additionally, the Annual Report shall be submitted to the Government within one month from the date of its approval by the DMF and shall also be hosted on the website of the Foundation. The Annual Report of each Foundation shall be laid before the State Legislative Assembly.
iii. Through an order dated 12.07.2021, Central Government has issued directions regarding the utilization of funds by the District Mineral Foundations which prohibits District Mineral Foundations to transfer funds to the State exchequer or State level fund (by whatever name called) or Chief Minister’s Relief Fund or any other funds or schemes. Also no sanction or approval of any expenditure out of the fund of the District Mineral Foundation shall be done at the State level by the State Government or any State level agency.
