Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha that royalty is collected directly by the State Governments. As per the Mines and Minerals (Development and Regulation) Act, 1957 a mining lease holder is required to pay royalty for any mineral removed or consumed from leased area to the state government as per rates specified in Second Schedule to the MMDR Act, 1957 by the Government.

The rates of royalty were last reviewed and revised by the Government on August 13th2009. In terms of the provisions of the MMDR Act, 1957, since the royalty rates can be enhanced only once in three years, the Ministry of Mines has set up a Study Group on revision of rates of royalty and dead rent for major minerals (other than coal. lignite and sand for stowing) on September 13th2011

As per available information, details of royalty collection by important mineral producing State Governments in the last three years are given below:

Royalty collections for major minerals (excluding coal & lignite) in last three years for some important mineral producing States:

(In INR crore)