Mining cos paid Rs 4,488 cr royalty to states last fiscal

NEW DELHI: The contribution of mining firms, excluding those producing coal and lignite, to the state exchequers as royalty rose by a little over 9 per cent to Rs 4,487.73 crore in 2010-11 over the previous fiscal.

In a written reply to Parliament, Mines Minister Dinsha Patel said states had collected Rs 4,101.73 crore as royalty from the mining firms in 2009-10. Royalty is collected directly by the state governments.

Chhattisgarh got the highest amount of royalty in 2010-11 at Rs 1,201.74 crore followed by Goa at Rs 974.19 crore. Karnataka received Rs 647.35 crore and Andhra Pradesh Rs 566.23 crore.

Under the Mines and Minerals (Development and Regulation) Act, 1957, a mining lease holder is required to pay royalty for any mineral removed or consumed from the leased area to the state governments.

The rate of royalty can be enhanced only once in three years and the last revision was made in August, 2009.

"The Ministry has set up a Study Group on revision of rates of royalty and dead rent for major minerals (other than coal, lignite and sand for stowing) in August, 2011.

Royalty collection by the state governments in 2008-09 stood at Rs 2,147.80 crore.