No relief to mining companies on royalty payment under new law

Union steel minister Narendra Singh Tomar ruled out any relief for mining companies on payment to set up District Mineral Foundations (DMFs), under a new law.

The companies were lobbying for some relief on royalty payment, stating the rates were far higher than in other countries.

“DMF contribution should not be proposed in zinc and lead, as they are already paying the highest royalty in the world,” said an executive of a leading mining company. “Royalties and taxes should be kept at par with other countries, to make Indian companies globally competitive.”
 

A DMF is to be established by state governments for all districts affected by mining. The payments by mining companies is linked to the royalty amounts.

Tomar was speaking to reporters at India Steel 2015, a biannual event organised by the Federation of Indian Chambers of Commerce and Industry.

On rising imports of steel, Singh expressed concern over a surge this year. “Some imports did not conform to the country’s quality parameters,” he said. “While we welcome competition, the government would not tolerate dumping of sub-standard steel.”

He mentioned the new Steel Research Technology Mission for India, for which Rs 200 crore had been allocated.