By Raghavendra Verma in New Delhi
The Indian government has started the process of reviewing the royalty rates paid by the mining companies for 10 minerals that include chromite, manganese ore, asbestos and precious stones.
Indian mines minister Dinsha Patel has announced that a study group with representatives from various state governments and industry bodies has been formed to decide on the new rates.
RK Sharma, secretary general of the Federation of Indian Minerals Industries and study group member told IM that the committee will be submitting its report by July.
For chromite, the current rates are 10% of sale price; for manganese ore, 4.2%; and for concentrate it is 1.4% – all on an ad valorem basis.
Asbestos royalty rates are $18/tonne for chrysotile and 15% of sale...