Raman Singh seeks 20 per cent advalorem royalty for iron ore mining

New Delhi, Dec 19 (UNI) Chhattisgarh Chief Minister Raman Singh today voiced his support in favour of the demand for raising the advalorem royalty to 20 per cent of the market value on iron ore mined in the states not only to improve the state exchequers but also to make it mandatory for the mining companies to invest in the local infrastructure.

Talking to newspersons on the sidelines of the National Development Council meeting, Mr Singh said the state was in support of exporting iron ore in raw form by the mining companies. These companies must be made to value addition the raw materials before they ship out the material. Such a step will develop the area, provide direct and indirect employment to the people of the area besides generating resources.

The royalty presently received by the states was less than one per cent and was too inadequate to compensate the losses in terms of environment and to the area. The mining companies should be asked to invest five per cent of their revenues in the local infrastructure development.

He said he would be meeting Prime Minister later today in support of the demand.

UNI