The Hindu : Karnataka / Bangalore News : State seeks hike in royalty on minerals

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Friday, Jun 12, 2009
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Karnataka

Karnataka - Bangalore

State seeks hike in royalty on minerals

Special Correspondent

It was to have been revised in 2007

Memorandum on hike in royalty submitted to Centre
State receives only Rs. 80 crore a year as royalty revenue

BANGALORE: The State Government has urged the Centre to fix royalty on major minerals at 10 per cent, ad valorem, to enhance non-tax revenue.

Addressing a press conference here on Wednesday, V. Dhananjay Kumar, Karnataka’s Special Representative in New Delhi, said revision of royalty rates on major minerals was due since October 2007. The delay had deprived the State of a major source of non-tax revenue. If royalty on minerals had been fixed at 10 per cent, ad valorem, the State would have received additional revenue of Rs. 1,032 crore during the October 2007 to September 2008 period. The State now received only Rs. 80 crore a year in revenue from minerals, he said.

An expert committee constituted by the Centre has recommended the pattern on which royalty rates are to be revised. The extraction and transportation of minerals causes extensive damage to the environment. The capacity of the State Government to meet these costs will be strengthened if royalty rates are revised without further delay, Mr. Kumar said.

Chief Minister B.S Yeddyurappa met Union Finance Minister Pranab Mukherjee last week and submitted a memorandum seeking hike in royalty, Mr. Kumar said.

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