The Uttarakhand government has implemented new mining royalty rates following recent approval from the state cabinet and the governor. Officials stated that this move is expected to boost mining revenue by approximately Rs 50 crore.
Details of the Royalty Rate Increase
Brijesh Kumar Sant, Secretary of Mining, informed TOI that the royalty rate has been raised from Rs 7 per quintal to Rs 8 per quintal. Additionally, the royalty on mining material smaller than 25 cm has been increased from Rs 88.50 per tonne to Rs 100 per tonne. An additional royalty of Rs 50 per tonne will also be levied.
Historical Revenue Growth
Mining revenue in Uttarakhand has seen a significant rise over the past 13 years. In 2012-13, the department collected Rs 110 crore. For the fiscal year 2024-25, against a target of Rs 875 crore, the mining department collected Rs 1,041 crore. In the financial year 2025-26, against a target of Rs 950 crore, the government collected Rs 1,217 crore, which was Rs 267 crore more than the target.
Cabinet Approval and Revised Rules
The state cabinet had approved an amendment to the Uttarakhand Minor Minerals Concession Rules, 2023, under the industrial development department on April 30. This amendment increased the previously fixed royalty rate on minerals from Rs 7 per quintal to Rs 8 per quintal. The government order specified 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 25 cm 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 will be allowed to operate only outside the water-flow zone. However, the government did not change royalty rates in the Gaula, Kosi, and Dabka river zones.
Changes in Haridwar and Other Areas
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 on Private Land
Royalty rates were also revised for mining leases on private land. A uniform royalty rate of Rs 8 per quintal will 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 remain unchanged.
