Maharashtra Government has increased royalty charges on extraction of minor minerals. As per the notification issued by Revenue and Forests Department, the changes in royalty charges shall come into effect from July 1. Amid COVID-19 pandemic, this increase has not gone down well, and the quarry owners have urged the Government to suspend the hike for the time being. On June 4, the department has issued the latest notification effecting the hike from July 1.

 

As per the notification, almost all the rates of royalty have been increased by 50 per cent, compared to the rates specified in notification dated May 11, 2015. This has irked the quarry owners, who have been facing the impact of slump in demand due to COVID-19 pandemic. According to Altaf Ahmed, President, Vidarbha Quarry Owners’ Welfare Association, State Government should not have increased the rates of royalty as this will put an extra burden on the market, which is badly affected by COVID-19 pandemic and everyone is reeling under massive economical pressure. He appealed to Chief Minister and Revenue Minister to suspend this increase in royalty rates for time being. As per the notification dated May 11, 2015, the royalty rate was Rs 400/- per brass limestone and lime shell used in kilns for manufacture of lime used as a building material. Now, as per the new notification, the royalty rate for this category of minor minerals has been hiked to Rs 600/- per brass from July 1, 2021. Similarly, the rate of Rs 400/- per brass has been increased to Rs 600/- per brass for all stones removes irrespective of size including stone dust, either by excavation or collection. The rate of ordinary sand not used for refractory and manufcture of ceramic, metallurgical activities, optical purposes, stowing in coal mines manufacture of silvicrete cement, and manufacture of pottery and glass, has been increased from Rs 400/- per brass to Rs 600/- per brass for area other than Mumbai metropolitan region.

 

Most importantly, the ordinary earth used for filling or levelling purpose in construction of embankment, roads, railways, and building had the royalty rate of Rs 400/- per brass. It, too, has been increased now to Rs 600/- per brass. According to Altaf Ahmed, “We used to pay Rs 400/- per brass royalty for basalt, building material stone, and Rs 40/- per brass as mineral development fund. These charges have been increased to Rs 600/- per brass and Rs 60/- per brass respectively. In the given circumstances of demand slump, we have requested the Chief Minister and Revenue Minister to put on hold the increase.”

 

The 2015 notification had caused much furore following which it could not be implemented for two years. Later on, it came into effect without retrospective effect. State Government has powers to issue notification regarding changes in royalty rates every three years. As per the notification dating back to 2015, the dead rent on all minor minerals excluding granite was Rs 6,000/- per hectare or portion thereof. Now, as per the latest notification, it has been increased to Rs 9,000/- per hectare. Thus, overall there has been 50 per cent hike on an average in royalty rates for minor minerals as compared to 2015 notification.