Opposing the proposal to hike royalty on iron ore to 15%, mining industry has said any increase would impact small units and hit revenue to states due to unviable and resultant less production. Miners' body Federation of Indian Mineral Industries (FIMI) said that the royalty should rather be lowered to 7.5%, from 10% at present, to induce growth. A study group appointed by the mines ministry has given its recommendations, including hike in royalty on iron ore to 15%, to various stakeholders. FIMI in a 'note of dissent' said that hiking royalty rate to 15% would go in vain as net revenue to states would come down due to unviable and resultant less production.
Spinners body seeks govt help
The South India Spinners Association (SISPA) has urged the textile ministry to come out with a stable fibre policy, extend Textile Upgradation Fund (TUF) facility for the suspended period between June 2010 to April 2011 and provide adequate supply of hank yarn at reasonable price to the mills. SISPA president K Thirunavukkarusu said all the
550 members of the association are medium and small units with a capacity of 2,000 spindles and they need a stable fibre policy to survive in the business.