Small BusinessGovt initiates process for setting up Mineral Development Fund
The government has started the process of setting up a fund to promote scientific mining practices in India through levy of a cess on the royalty charged on certain minerals like iron ore, the Rajya Sabha was informed today.
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The proposal for levying up to 10 per cent cess on royalty charged on minerals like iron ore, copper and lead to be used to promote scientific mining practices is part of a draft bill formulated to replace the Mines and Minerals Development Regulation Act (1957), which governs the sector./p>
"...The Central Government has initiated a process to introduce legislative changes in terms of the National Mineral Policy, 2008, which enunciates setting up of fund for mineral development through levy of separate cess," Mines Minister B K Handique informed the Upper House of Parliament in a written reply.
"The amount of revenue likely to be generated cannot be estimated at present since it is dependent on the finalisation of rate of cess by the Government," he said.
The draft bill proposes to set up two separate funds, one each at the Centre and State level for promotion of modern mining practices.
Earlier, the Mines Ministry had said that it will target to place the bill for enacting a Mines and Minerals (Development and Regulation) Act in the current session of Parliament, but the process for the same could not be immediately confirmed.