Mines ministry to decide rates for local benefit sharing by month-end

The mines ministry is likely to decide the rates for local benefit sharing by the end of this month, said a senior government official.

He, however, refused to speculate the range of interest rate, as heavy discussions with mining players and state governments are going on.

“The mining industry wants low interest rates while the state governments are asking for rates near the upper limit,” added the official.

According to the Mines and Minerals (Development and Regulation) Act, 2015 or MMDRA Act, the District Mineral Foundation (DMF) would be entrusted with the responsibility of local-benefit sharing. 

As per this law, the central government would decide the percentage (equivalent to royalty) which will be paid to DMF by mine owners. For the existing miners, the upper limit is an amount equivalent to royalty; for the new miners which will get auctioned mines, the upper limit is an amount to equivalent to 33% of royalty.