Latest News | Coal Ministry Slashes Interest on Late Payment of Royalty, Rent

New Delhi, Sep 8 (PTI) The government has reduced the rate of interest levied on delayed payment of royalty, rent and fee from coal mines, a move that would give a fillip to ease of doing business.

The coal ministry has amended the Mineral Concession Rules, 1960 (MCR) aimed at decriminalising its provisions.

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The Centre has been taking action in a bid to reduce compliances for business and citizens, the coal ministry said in a statement.

"To further promote and boost the 'Ease of doing business' policy of the government, the amendment in MCR decriminalised 68 provisions whereas penalty has been reduced for 10 provisions of MCR," it said.

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MCR relates to the application and grant of mineral concessions such as reconnaissance permit, prospecting license, and mining lease.

These concessions are pre-condition for development and operationalisation of mines, necessitating many compliances.

For adjusting additional or shortfall royalty, express provision has been brought in.

"Further, rate of penal interest on delayed payment of rent, royalty, fee, or other sums due to the government has been reduced from 24 per cent to 12 per cent," it said.

The provisions, the ministry said, is likely to provide the much-needed economic relaxations in the coal sector.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)