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What mining royalty do I pay for minerals extracted near Shimla?

PR Asked by Pradeep Naidu from India

Quick Answer

The mining royalty for minerals extracted near Shimla is governed by the provisions laid down in the Mines and Minerals (Development and Regulation) Act, 1957, and the respective rules framed by the Himachal Pradesh government.

Detailed Legal Analysis

The mining royalty for minerals extracted near Shimla is governed by the provisions laid down in the Mines and Minerals (Development and Regulation) Act, 1957, and the respective rules framed by the Himachal Pradesh government. The royalty rates can vary based on the type of mineral being extracted.

Here are the key points regarding mining royalties in Himachal Pradesh:

  • Applicable Laws: The primary legislation governing mining operations and royalties in India is the Mines and Minerals (Development and Regulation) Act, 1957.
  • State Regulations: The Himachal Pradesh Minor Minerals (Concession) Rules, 1971, outline specific royalty rates and conditions applicable within the state.
  • Royalty Rates: The royalty rates are specified for different minerals. For example:
    • Sand: Rs. 10 per cubic meter
    • Gravel: Rs. 8 per cubic meter
    • Stone (Boulder): Rs. 20 per cubic meter
    • Other minerals: Rates can vary, and it's advisable to refer to the latest government notifications.
  • Payment Frequency: Mining royalties are typically payable on a monthly basis, and the payment should be made by the 10th of the subsequent month.
  • Obtaining a Mining Lease: To extract minerals legally, you must obtain a mining lease from the state government, which involves:
    • Submitting an application to the Department of Mines and Geology.
    • Providing necessary documentation, including environmental clearances if applicable.
    • Complying with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.
  • Environmental Compliance: It's essential to adhere to the provisions of the Environmental Protection Act, 1986, regarding environmental clearances and impact assessments.

For accurate and updated information regarding specific royalty rates and compliance requirements, it is advisable to consult the latest notifications from the Himachal Pradesh government or the Department of Mines and Geology.

Last updated: October 4, 2026 LPReviewed by LawPucho Legal Team

Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.

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