Schedule 1 of The Offshore Areas Mineral (Development and Regulation) Act, 2002 in hindi
THE FIRST SCHEDULE [See section 16(1)] RATES OF ROYALTY 1. Brown ilmenite (leucoxene), Ilmenite, Rutile and Zircon Two per cent. of sale price on ad valorem basis. 2. Dolomite Forty rupees per tonne. 3. Garnet Three per cent. of sale price on ad valorem basis. 4. Gold One and half per cent. of London Bullion Market Association price (commonly referred to as “London Price”) chargeable on the contained gold metal in ore produced. 5. Limestone and Lime mud Forty rupees per tonne. 6. Manganese Ore Three per cent. of sale price on ad valorem basis. 7. Monazite One hundred and twenty-five rupees per tonne. 8. Sillimanite Two and half per cent. of sale price on ad valorem basis. 9. Silver Five per cent. of London metal Exchange price chargeable on the contained silver metal in ore produced. 10. All other minerals not hereinbefore specified. Ten per cent. of sale price on ad valorem basis. 16
Summary
- The First Schedule sets out the specific royalty rates that a lessee must pay to the Central Government for minerals removed or consumed from their lease area.
- Some minerals have a fixed royalty per tonne, such as forty rupees per tonne for Dolomite and Limestone, or one hundred and twenty-five rupees per tonne for Monazite.
- Other minerals are charged a percentage based on their sale price (ad valorem), ranging from two percent for Ilmenite to ten percent for any unlisted mineral.
- Precious metals like Gold and Silver are charged a percentage based on international London prices applied to the metal contained within the raw ore produced.
- The Central Government can change these rates by publishing a notification, but they are forbidden from increasing the royalty rate for any specific mineral more than once in a three year period.
Practical examples
FAQ
1. How do I know how much royalty to pay for an unlisted mineral?
If a mineral is not specifically named in the First Schedule, the royalty rate defaults to ten percent of the sale price on an ad valorem basis.
2. How is the royalty calculated for gold?
Gold is charged at one and a half percent of the London Bullion Market Association price, applied to the actual gold metal contained within the mined ore.
3. Can the government constantly raise the royalty rates to make more money?
No, while the government can change the rates, they are legally prevented from enhancing the rate for any given mineral more than once every three years.
Test yourself
Q1.Under The First Schedule of The Offshore Areas Mineral (Development and Regulation) Act, 2002, what is the fixed royalty rate applied to Limestone and Lime mud?
Q2.Under The First Schedule of The Offshore Areas Mineral (Development and Regulation) Act, 2002, read with Section 16, what protection does a lessee have against rapid increases in royalty costs for Manganese Ore?
Q3.Under The First Schedule of The Offshore Areas Mineral (Development and Regulation) Act, 2002, how is the royalty rate for Silver determined?
Q4.Under The First Schedule of The Offshore Areas Mineral (Development and Regulation) Act, 2002, read with Section 16, what triggers the requirement for a lessee to pay the royalty?
Q5.Under The First Schedule of The Offshore Areas Mineral (Development and Regulation) Act, 2002, what rate applies if a company starts mining a newly discovered offshore mineral that is completely absent from the scheduled list?