The Indian Government has started work on a mineral development fund that will encourage scientific mining practices in the country.
The fund involves levying a maximum of 10% cess on royalty charged on copper, iron ore, lead and other minerals that will be deployed for scientific mining practices, according to Business Standard.
The proposal is part of a draft bill established as a replacement for the Mines and Minerals Development Regulation Act (1957), which governs the industry.
India’s Mines Minister B K Handique said the central government has begun a process to introduce legislative changes in the National Mineral Policy 2008, which involve establishing a mineral development fund for levy of separate cess.
“The amount of revenue likely to be generated cannot be estimated at present since it is dependent on the finalisation of rate of cess by the government,” Handique said.
The draft bill involves establishing separate funds at central and state level for encouraging contemporary mining practices.