New Royalties on Iron Ore in India
November 9th 2011 11:10
Link: www.commodityplaza.com
The new royalty system will be based on pithead prices of iron ore supply across India. The royalty practice at present in India is based on state wise average price set by IBM ( Indian Bureau of Mines ) which makes low royalty collection.
The new method will help to raise royalty collection for states. The Ministry of Mines cleared that the royalties will be based on pithead prices and not on market prices.
The Mineral Conservation and Development Rule number 45 was amended in February, which allowed the states to collate prices at different point of sale.
The revision of royalty rates will be done after every three years. All states where the mining of iron ore is done can collect a charge either on per ton basis or on valorem basis and may be possible after August 2012.
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