New Delhi: Mineral-rich Odisha will be the biggest beneficiary of the revision of royalty rates on iron ore and other minerals with its annual collection estimated to go up by 50.27 percent to Rs 4,880 crore.
The rise in annual royalty collection from around Rs 3,250 crore in 2011-12 would help the backward state to take up more development projects, a senior official in the Centre said.
Leading in production of iron ore and other minerals in the country, Odisha's royalty collection is also expected to be more than two and half times compared to Chhattisgarh, the second biggest gainer, official sources said.
Chhattisgarh's royalty collection is likely to swell by 46.77 percent to Rs 1,976 crore from Rs 1,346 crore as in FY'12. Goa would get Rs 1,414 crore from Rs 943 crore earlier, clocking a 49.99 percent growth.
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 percent 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 percent rise in collection to Rs 472 crore from Rs 376 crore earlier.
It is estimated that the royalty collection of the states would increase up by 41.12 percent to Rs 12,274 crore per annum from Rs 9,406 crore in 2011-12.
Earlier this week, the government approved the revision of rates of royalty and dead rent of 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 revision, done every three years, has been pending since 2012. The revision was last made in 2009.
Royalty for iron ore has been revised to 15 percent from 10 percent earlier. States get the royalty while Centre has been bestowed with the charge of revising it.
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.
Tomar has already met Chief Ministers of Goa, Rajasthan, Karnataka and industry minister of Gujarat seeking their views on how to get rid of the challenges that are affecting the sector.
"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 had recently written to state Chief Ministers.
