Government proposes 50% hike in royalty on limestone produced from captive mines

More than a decade after it was last revised, the Centre is pushing for a 50 per cent raise in the royalty on limestone produced from captive mines while leaving the royalty rates untouched for those produced from auctioned mines.

- AMITAV RANJAN

“The royalty on LD limestone extracted from non-auctioned or captive mines is proposed to be increased to Rs 135 per tonne from present Rs 90 per tonne and on non-LD limestone to Rs 120 per tonne from Rs 80 per tonne” said a Mines Ministry official.

LD limestone refers to low-silica (below 1.5 per cent silica) limestone and is used as a flux in the iron and steel industry, specifically in Linz-Donawitz process to remove impurities in the making of steel. Non-LD or cement grade limestone accounted for 97.2 per cent of the total limestone produced in 2020-21 of which captive mines contributed 95 percent of the supplies.