November 26, 2001
‘41’
| LOK SABHA |
COMMITTEE CONSTITUTED TO ADOPT AD-VALOREM BASIS FOR DETERMINATION OF ROYALTY
The royalty rates on coal were last fixed by the Central Government on 11.10.1994. The Sarkaria Commission in its report submitted to the Ministry of Home Affairs, in Chapter XIII on Mines & Minerals made a recommendation in Para 13.7.01 as under:
"Proviso to Section 9 of the MMDR Act should be amended to reduce the period specified therein for revision of royalty rates from four years to two years."
The Standing Committee of the Inter-State Council which monitored implementation of the recommendations of the Sarkaria Commission deliberated the recommendation of the Commission in their Eighteenth meeting held on 1.9.2000, in which representatives of the Governments of West Bengal, Tamil Nadu, Punjab, Assam, Madhya Pradesh and Department of Mines of the Government of India had expressed their views. Following the discussion the Standing Committee decided on a proposed consensus and modified the recommendation as under:
"The Government will endeavour revision of royalty every three years with a progressive shift towards a fully ad-valorem based royalty regime in accordance with the existing provision of the MMDR Act, 1957".
In the Department of Coal a Committee has been constituted under the Chairmanship of Additional Secretary (Coal) to examine the issue of adoption of ad valorem basis for determination of royalty on coal and the related matters of revision of royalty rates last fixed in 1994. The Committee held its final round of discussions with the representatives of the State Governments and the Central Ministries/Departments/ Organisations on 4.10.2001. The Committee is now firming up its recommendations and the report is expected to be submitted very shortly.
The above was stated by MOS for Coal & Mines Shri Ravi Shankar Prasad in a written reply today in Lok Sabha.