Government seeks to resolve ‘problems, loopholes’ in setting the average selling price of minerals
The government has also sought suggestions from various stakeholders to overcome the problem until the National Mineral Index (NMI) is formulated for individual minerals.
The development is taking on importance in the wake of the body of miners, FIMI, earlier urging the Center to continue with the current system of average selling prices published by the Indian Bureau of Mines (IBM) which it believes is the average the most efficient and transparent way to ensure the discovery of prices and revenues to the Treasury.
The Ministry of Mines had set up a committee in April to examine the double calculation of the royalty due to its inclusion in the calculation of the mineral ASP and to develop an NMI for the assessment of mineral resources as well as for the determination of the auction value of mining concessions and statutory payments. for future auctions.
The committee decided to “solicit comments / suggestions from the governments of states and Union territories, the mining industry, stakeholders, trade associations and other concerned entities, on … the issues and shortcomings of the current EAF fixation and suggest measures to overcome these until NMI is formulated for individual minerals, ”the Ministry of Mines said in an opinion.
The group also asked for suggestions on the impact of double-counting charges, if any, due to its inclusion in the ASP calculation and also called for action to address it, he said.
The panel chaired by former Coal Secretary SK Srivastava includes members of different central government organizations.
FIMI had previously said that the basic premise of NMI is that the current statutory payments, including auction premium, royalties, the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET) are based on the ‘ASP released by IBM.
“We believe that the current ASP system is a realistic pricing mechanism, in which the actual transaction price of the top 10 non-captive mines in a state sold at arm’s length is taken into account. ASP is the weighted average value of ex-mine prices of non-captive mines, ”he said.
The national mineral index is being developed on the model of the National Coal Index (NCI), which is based on the prices notified by Coal India (CIL), auction prices and import prices. , said FIMI.
While the majority of the coal consumed in the country is for electricity, which is a regulated sector, all non-coal minerals are consumed for unregulated sectors such as steel, aluminum, cement, etc.
Given this fundamental difference between regulated and unregulated consumer sectors, the methodology for calculating the NMI is expected to differ fundamentally from that of the NCI, the FIMI said.
“We also understand that players who have offered excessively high bidding premiums to include captive sell trades in NMI … This will help those captive players to report lower trades than market trades, which will be captured in NMI, ultimately bring it down and the associated statutory payments to the public treasury, “the body of miners said.
The CII had said that the development of the proposed uniform national mineral index for all minerals, in line with the national coal index, would address the ambiguities of the current average selling price regime, resolve the irregularities in the High ASP of limestone and bauxite (metal). PTI SID MKJ
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI