Uttarakhand raises mining royalty, eyes Rs 50cr revenue gain

Dehradun: Uttarakhand govt implemented new mining royalty rates after the recent nod from state cabinet and approval from the governor, a move officials said would increase mining revenue by around Rs 50 crore.Secretary, mining, Brijesh Kumar Sant told TOI that royalty rates had been raised from Rs 7 per quintal to Rs 8 per quintal. He said royalty on mining material smaller than 25cm had also been increased from Rs 88.50 per tonne to Rs 100 per tonne, while an additional royalty of Rs 50 per tonne would also have to be paid.Mining revenue in Uttarakhand recorded a major rise over the past 13 years. In 2012-13, the department collected Rs 110 crore. Against a target of Rs 875 crore, the mining department collected Rs 1,041 crore in 2024-25. In financial year 2025-26, against a target of Rs 950 crore, govt collected Rs 1,217 crore, which was Rs 267 crore more than the target.State cabinet had on April 30 approved an amendment to Uttarakhand Minor Minerals Concession Rules, 2023, under industrial development department, increasing the previously fixed royalty rate on minerals from Rs 7 per quintal to Rs 8 per quintal. The govt order mentioned an increase in royalty on khandas, boulders, gravel, soil, ballast, single, moram obtained from mountain erosion, and sand sourced from mining leases separate from riverbeds. Royalty on mining material smaller than 25cm was increased from Rs 88.50 per tonne to Rs 100 per tonne, with an additional royalty of Rs 50 per tonne.Registered tractor-loaders of up to 80 horsepower would be allowed to operate only outside the water-flow zone. Govt, however, did not change royalty rates in Gaula, Kosi and Dabka river zones. In Haridwar and other areas, royalty on sand, gravel and boulders from mining leases on revenue and forest land situated on riverbeds was increased by Rs 1 per quintal to Rs 8 per quintal.Royalty rates were also revised for mining leases on private land. A uniform royalty rate of Rs 8 per quintal would apply to both plains and hilly areas, while additional charges of Rs 7 per quintal in plains and Rs 3 per quintal in hilly areas remained unchanged.