Ongole: The decision of government of Andhra Pradesh to reduce the rate of collection of district mineral fund from 30 percent to 12.5 percent is going to help the galaxy granite industry which is facing a hard time in the state for the past few months.
It is a regular practice to the government to revise the royalty for the minerals for every three years. In September 2015, the government enhanced the royalty for granite for 25 percent, which became a burden for the granite industry.
At the same time, the central government proposed all the states to constitute District Mineral Foundation to take up various programs for overall development of the persons and the area whose ecology has been degraded by the rampant mining. Read More
The government is committed to social and economic equality for the "deprived and disempowered" sections as enshrined in the Constitution, President Pranab Mukherjee said while asserting that all its schemes are for the poor, deprived and underprivileged.
In his address to the joint sitting of Parliament, Mukherjee spoke about a host of government schemes and initiatives covering aspects like housing, LPG connections, electrification, healthcare, education, farmers' welfare, welfare of the specially-abled, rural development and urban development.
"All the schemes of my government are for the poor, deprived and underprivileged," he said.
Vedanta Limited moved the Delhi High Court on Tuesday, against an August 31, 2016 notification made by the Ministry of Coal, amending the Mines and Mineral (Contribution to District Mineral Foundation) Rules 2015 with retrospective effect from January 12, 2015.
Pursuant to the introduction of the Mines and Minerals (Development and Regulation) Amendment Act 2015, the Ministry of Coal had on September 16, 2015 notified various District Mineral Foundations (DMFs), which were deemed to have come into effect on January 12, 2015. The rules for contributions to these foundations were subsequently framed for ‘non-fuel’ and ‘fuel’ minerals in September and October 2016, respectively. According to the rules, contributions to the DMFs were to be made from January 12, 2015 for ‘non-fuel’ minerals and October 20, 2015 for ‘fuel’ minerals.
Chhattisgarh had atleast 32 mining applications pending which awaited environment and forest clearances besides those from Indian Bureau of Mines (IBM) as on October 6, 2016, official sources informed.
Notably, Chhattisgarh is among seven states where mineral blocks have been auctioned resulting in total additional revenue of `47,551 crores to the Central Government as on November 2016.
The other states where the mineral blocks were auctioned are Andhra Pradesh, Madhya Pradesh, Rajasthan, Odisha and Jharkhand, the Central Government has informed.
Notably, Chhattisgarh has collected ` 712.04 crores under 'District Mineral Foundations' (DMFs) from all the 27 districts of the State where the Foundation had been established, the Central Government has informed.
Notably, the Mines and Mineral (Development and Regulation) Act, 1957 (MMDR Act, 1957) was amended through the MMDR Amendment Act, 2015. One of the amendment provisions relates to introduction of section 9B which provides for the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations.
New Delhi: Chhattisgarh’s request for a revision in royalty rates on coal to 30 per cent from the existing 14 per cent ad-valorem, will push up the cost of electricity by 7 per cent or 10-12paisa/kWh, India Ratings today said in a report.
The state government has constituted a study group to consider the revision in the royalty rates based on the request.
“Ind-Ra believes the royalty hike looks quite steep at 30 per cent, and if accepted, it will lead to coal attracting the highest ad-valorem duty compared to all other minerals,” the report said.
Assuming a pithead price of Rs 720 per tonne for coal, the royalty increase will also lead to a higher contribution towards district mineral foundation (DMF) at 30 per cent of royalty and National Mineral and Exploration Trust (NMET) at 2 per cent of royalty, which translates into a higher cost of electricity generation by 10-12paisa/kWh.