The Ministry of Coal on 7th September 2022, has published the Mineral Concession (Amendment) Rules, 2022 to further amend the Mineral Concession Rules, 1960.
Through this amendment, the state government under section 64A shall charge simple interest at the rate of 12% per annum by revising its earlier rate of 24% on any rent, royalty or fee, or other sum due to that Government under the Act or these rules or under the terms and conditions of any prospecting licence or mining lease from the sixtieth day of the expiry of the date fixed by that Government for payment of such royalty, rent, fee or other sum and until payment of such royalty, rent, fee or other sum is made.
Further under rule 64B which deals with the charging of royalty in case of minerals subjected to process, in which the following proviso has been notified:
“Provided further that any royalty paid under the first proviso shall be subject to adjustment on the basis of- (a) final declaration of the grade of run-of-mine coal or lignite after sampling; or (b) final declaration of the National Coal Index of the relevant basket of coal grade or National Lignite Index, as applicable, on the date of dispatch or consumption, as the case may be, and payment of shortfall royalty to the lessor or refund of additional royalty to the lessee shall be made based on such adjustment.
