Old mineral royalty rates to cost Karnataka Rs 150 cr

Karnataka government is likely to witness an estimated loss of Rs 150 crore during the financial year 2007-08 following the non-revision of royalty rates on major minerals and delay in implementing new royalty rates on minor minerals.

The MTPF that was tabled in the ongoing legislative assembly sessions noted that royalty rates on major minerals, which were due for revision in 2007-08, have not been revised till February 2008. It is the Centre which regulates all major minerals in the county.

Major minerals include iron ore and bauxite, non-metalic minerals like limestone and mica and fuel minerals like coal.

Even though the state had undertaken revision of royalty rates on minor minerals, they were brought into operation only from the second quarter of the fiscal 2007-08, the MTPF noted.

Receipts from royalty on major and minor minerals during the period are expected to be lower by Rs 150 crore as against the budget estimates of Rs 600 crore. The state government regulates minor minerals that include sandstone, clay and granite. Improved enforcement measures, computerisation and expected revision of major minerals royalty rates are likely to yield a revenue of Rs 632 crore in 2008-09.

This article was first uploaded on July twenty-three, twenty eight, at twenty minutes past twelve in the am.