Market Survey on Copper - Indian Bureau of Mines
Market Survey on Copper - Indian Bureau of Mines
Market Survey on Copper - Indian Bureau of Mines
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5.3 ROYALTY AND OTHER TAXES<br />
5.3.1 Royalty<br />
In exercise <strong>of</strong> the powers c<strong>on</strong>ferred by Subsecti<strong>on</strong> (3) <strong>of</strong> the Secti<strong>on</strong> 9 <strong>of</strong><br />
the <strong>Mines</strong> and Minerals Development and Regulati<strong>on</strong> (MMDR) Act, 1957, the<br />
Government <strong>of</strong> India notifies rates <strong>of</strong> royalty in respect <strong>of</strong> minerals applicable in<br />
all states <strong>of</strong> and Uni<strong>on</strong> Territories (Except in the State <strong>of</strong> West Bengal). The<br />
holder <strong>of</strong> the mining lease is liable to pay royalty in respect <strong>of</strong> all minerals<br />
removed or c<strong>on</strong>sumed from the leased area at the rates specified in the Sec<strong>on</strong>d<br />
Schedule <strong>of</strong> MMDR Act, 1957. The Central Government is empowered to<br />
increase or reduce the rates <strong>of</strong> royalty, but it can not increase the rate in respect<br />
<strong>of</strong> a mineral more than <strong>on</strong>ce during a period <strong>of</strong> three years. The royalty is to be<br />
paid at such a time and in such a manner as the State Government may<br />
prescribe. The rates <strong>of</strong> royalty <strong>of</strong> zinc are levied <strong>on</strong> the basis <strong>of</strong> c<strong>on</strong>tained<br />
copper metal in the ore produced. The royalty rate applicable is "Four Point<br />
two percent <strong>of</strong> L<strong>on</strong>d<strong>on</strong> Metal Exchange “<strong>Copper</strong> Metal Price chargeable <strong>on</strong> the<br />
C<strong>on</strong>tained <strong>Copper</strong> Metal in the ore Produced.<br />
5.3.2 Dead Rent<br />
The holder <strong>of</strong> a mining lease must pay to the State Government dead<br />
rent annually at such a rate as may be specified in the MMDR Act, 1957, for<br />
areas included in the mining lease.<br />
(1) Presently the rate <strong>of</strong> dead rent applicable to the leases granted for low value<br />
minerals are as under<br />
Rates <strong>of</strong> Dead Rent in Rupees per Hectare per Annum<br />
From 2 nd year <strong>of</strong> lease 3 rd & 4 th year Fifth year <strong>on</strong>wards<br />
200/- 500/- 1000/-<br />
(2) Two times the rate specified in paragraph (1) above in the case <strong>of</strong> lease<br />
granted for medium value minerals.<br />
(3) Three times the rate specified in paragraph (1) above in the case <strong>of</strong> lease<br />
granted for High Valued Minerals<br />
(4) Four times the rate specified in paragraph (1) above in the case <strong>of</strong> lease<br />
granted for precious metals and st<strong>on</strong>es.<br />
<strong>Copper</strong> being included in the list <strong>of</strong> High Valued Minerals the rate <strong>of</strong> dead rent<br />
chargeable for copper is three times the above rates i.e. Rs. 600/- per hectare per<br />
annum for sec<strong>on</strong>d year <strong>of</strong> lease and Rs. 1500/- per hectare per annum in 3 rd & 4 th year<br />
and 5 th year <strong>on</strong>wards Rs. 3000 per hectare.<br />
5.3.3 Surface Rent<br />
The lessee is required to pay surface rent for the surface area used for<br />
mining operati<strong>on</strong> at a rate not exceeding the land revenue as may be specified<br />
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