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News: The government has introduced royalty rates for new offshore minerals such as construction sand (Rs 40/tonne), polymetallic module (Rs 3% of Average Sale price) and overburden/waste (Rs 10/tonne). While the government is proposing increasing the royalty rates of dolomite, limestone, and limemud from the current Rs 40/tonne to Rs 50/tonne. Moreover, Gold royalty rates stand at 1.5% of London Bulletin market association while silver is at 5% of LME price.
Views: The introduction of new royalty rates comes at a time when the government is preparing to auction 20 offshore mineral blocks in the coming months. The rise in royalty rates for dolomite and limestone is expected to impact the steel and cement industries, as these materials are essential in the production of steel and cement.
Impact: Neutral