The Union Cabinet approved royalty rates for 12 critical minerals including beryllium, cadmium, cobalt, and vanadium. These minerals are essential for high-tech products like solar panels and semiconductors, prompting the need for rationalizing royalty rates. With the Mines and Minerals Amendment Act, 2023, in force, the government is set to auction blocks for the first time.
The government’s decision follows the listing of 24 critical and strategic minerals in the Mines and Minerals (Development and Regulation) Amendment Act, 2023. These minerals are crucial for various high-tech products, and the government aims to ensure a fair auction process by specifying royalty rates. The approved rates vary for different minerals, ranging from 2% to 4% of the average sale price.
According to the Ministry of Mines, the royalty rates have been specified to enable fair auctioning of blocks for the 12 critical minerals. With countries like China having a monopoly on these minerals, it is essential for India to streamline the royalty process to encourage domestic production. The government’s move is expected to boost the mining sector and reduce dependence on imports for these critical minerals.
