The government has tweaked the so-called mineral concession rules to lower the interest rate states can charge on dues, according to a gazette notification on September 7.
The interest rate for rent, royalty or fee payments to states has been reduced to 12 percent from 24 percent, while the deadline of 60 days for payment of rent, royalty or fees has also been done away with.
The changes have been made under the powers conferred by the Mines and Minerals (Development and Regulation) Act, 1957.
The state governments were allowed to charge simple interest on any rent, royalty or fee or other sum due to them under the Act or the 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 the payment of such royalty, rent, fee or other sum and until such payment was made.
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