Royalty rate hike on Minerals

Central Cabinet has approved a long standing demand of Mineral rich state Governments to hike the royalty rate of Minerals

This has been done after five years . For example the rate of royalty on iron ore will be 15% from 10% now.

Royalty is a tax levied by the government on miners in lieu of transfer of ownership rights of mines but the Rate is fixed by the Central Government

For the  State government it is a source of revenue, but for the industrialists it as part of production costs.