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

Detailed Legal Analysis

The mining royalty for minerals extracted near Coimbatore is determined by the Tamil Nadu government's regulations and the Mineral Concession Rules, 1960, under the Mines and Minerals (Development and Regulation) Act, 1957.

In India, the royalty rates for minerals can vary based on the type of mineral and the state in which the extraction occurs. For Tamil Nadu, the royalty rates are specified by the state government and are subject to periodic revisions.

• The royalty is typically calculated as a percentage of the sale price of the mineral or as a fixed amount per unit of mineral extracted.
• For specific minerals, the following standard royalty rates are applicable as per the Tamil Nadu Minor Mineral Concession Rules, 1959:
• Granite: 10% of the sale price
• Sand: ₹10 per cubic meter
• Clay: ₹5 per metric ton
• Stone: ₹5 per metric ton
• It is essential to verify the specific rates applicable for the minerals you intend to extract, as they can vary.
• Additionally, the Ministry of Mines may issue guidelines or notifications that can affect the royalty rates or calculation methods.
• Royalty payments must be made to the state government in a timely manner to avoid penalties.

To ensure compliance, follow these steps:

• Identify the mineral you plan to extract and review the specific royalty rates applicable in Tamil Nadu.
• Apply for the necessary mining lease or permit under the Mines and Minerals (Development and Regulation) Act, 1957 and the respective state regulations.
• Maintain accurate records of the quantities extracted and sales, as these will be required for calculating the royalty due.
• Submit the royalty payment to the appropriate authority as outlined in the lease agreement and state regulations.
• Stay updated on any changes in legislation or royalty rates by regularly checking notifications from the Tamil Nadu Department of Geology and Mining.

For detailed information regarding the specific rates and compliance procedures, refer to the Tamil Nadu Minor Minerals Concession Rules, 1959 and the Mines and Minerals (Development and Regulation) Act, 1957.