___________

(Thanks to Umashankar babu for the tip.)

Following is an excerpt from a report in the Wall Street Journal.

India’s federal government has approved an increase in mining royalties for various minerals including iron ore, copper, zinc and lead, government officials said Wednesday.

Two mining ministry officials, who didn’t want to be named, told Dow Jones Newswires that India’s cabinet committee on economic affairs has approved the proposal for changes in royalties on minerals other than coal, and a formal notification with immediate effect is expected this week.

…  The change in rates will increase states’ annual revenue from royalties to 46.3 billion rupees ($968.6 million) from 22.88 billion rupees.

… The officials said the government will levy a 10% value-added or ad valorem royalty on iron ore mining.

For iron ore miners, the new royalty will mean switching to a tax regime under which they will be charged based on the market value of the minerals compared with the existing system of flat rates based on weight, the officials said.

At present, the government charges a fixed royalty of up to 27 rupees a metric ton on different grades of iron ore.

Iron ore spot prices in the local market may rise by about 10% in the near future, … said Rahul Baldota, …  But he added that iron ore producers in India, the world’s third-largest supplier of the commodity, will absorb the cost for exports in order to remain competitive.

…  India already charges value-added royalty rates for zinc, copper and lead, but the rates charged will now increase.

The government will charge an 8% royalty on zinc ore, up from 6.6% earlier, while the rate on copper will rise to 4.2% from 3.2%. The royalty on lead ore will go up to 7% from 5%.

On bauxite used for other than alumina and aluminum extraction and exports, a royalty of 25% will be charged. For use in alumina and aluminum extraction, the rate will be 0.5%. Previously, no royalties were charged.

Following are excerpts from a report in New Indian Express.

Granite resources abound in State, but the potential is untapped due to lack of promotion and absence of a clear-cut policy.

Orissa has about 20 different colours of granite. Out of the five most-attractive (recognised) colour granite of the world, four are available in Orissa, lavender blue in Berhampur, ikon brown in Paralakhemundi, sweat green in Titilagarh and black in Jeypore vicinity.

In Berhampur, Nayagarh, Paralakhemundi and Balangir, granites of international standard are abundantly available.

Skilled labourers too abundantly available in Bhadrak, Kendrapara and Balasore districts.

As Rajasthan is best known for its marble industry, Orissa can carve a niche for itself in granite sector if a little care is taken by the Government to streamline it, analysts feel.

The existing granite industries in Orissa should be assured by the Steel and Mines department to get the raw materials sufficiently on priority basis. At present, the mine owners, mostly outsiders, are supplying only mining wastes.

Since Orissa’s colour granite is very attractive, the granite processing units in Andhra, Karnataka and Tamil Nadu are taking all quality raw blocks and selling that in the market after processing. In the absence of market linkage for finished products Orissa is losing out on revenue and scope for generating employment.

Traders have demanded that Government … open a granite park/growth centre in Berhampur. The rate of royalty on decorative stone block/granite stone block should be increased to Rs 1500 from the existing Rs 700 on the inter-state sales transactions. …