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The revenues of the states after revision in the royalty rates is expected to increase by over 41% at Rs 13,274 crore per annum, from revenues of Rs 9,406 crore in 2011-12.
According to government sources, the state of Odisha will be the biggest beneficiary of the revision of royalty rates on iron ore and other minerals with its revenues from royalty increasing by 50.27% to Rs 4,880 crore. It had collected about Rs 3,250 crore in 2011-12.
Odisha is one of the largest iron ore producer in the country along with other minerals.
The new royalty rates, which were approved by Cabinet on Wednesday, will be notified soon.
The rates were revised for all major minerals other than minor minerals, coal, lignite and sand for stowing, as per provisions of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957. The royalty for iron ore has been revised to 15% from 10% earlier.
States get the revenues collected from royalty while the Central government has the powers to revise it.The revision is done every three years but it was pending since 2012 under the UPA II. The last revision in the royalty rates happened in 2009.
Chhattisgarh's royalty collection is likely to swell by 46.77% to Rs 1,976 crore from Rs 1,346 crore as in FY11-12. Goa would get Rs 1,414 crore from Rs 943 crore earlier, at a growth rate of 49.99%. Karnataka, where mining activity was banned in 2011, had collected around Rs 353 crore royalty in 2011-12. This may go up by 45.57% with the revision of the royalty rates to Rs 513.44 crore.
Rajasthan's royalty collection is also set to go up to Rs 1,533 crore from Rs 1,300 crore. Madhya Pradesh may also show an estimated 25.65% rise in collection to Rs 472 crore from Rs 376 crore earlier, according to government estimates.
Meanwhile, Steel and Mines Minister Narendra Singh Tomar will meet Odisha Chief Minister Naveen Patnaik next week to seek his views on rejuvenating the mining sector. He has already met Chief Ministers of Goa, Rajasthan, Karnataka and industry minister of Gujarat.
"Now that Cabinet has approved the revision of royalty rates, a major demand of the state government has been met. I am sure, with your help and cooperation we will be able to improve the environment further so that the contribution of mining sector to the GDP increases substantially," Tomar said in a letter to the state Chief Ministers.
