The Jharkhand Cabinet chaired by Chief Minister Hemant Soren approved a major revision in cess rates on mineral-bearing land. The decision, taken under the Jharkhand Mineral Bearing Land Cess Rules 2024, marks the second such increase in the past year and is expected to generate an estimated 11000 crores annually for the State. The notification for the new rates has been issued.
Also Read: State Earned Rs. 2490 Crores from Mining Cess, Coal Sector Contributed the Most – Business Jharkhand
Under the revised framework, the cess on Coal has increased from Rs. 250 to Rs. 450 per metric tonne, while Iron Ore has moved from Rs. 400 to Rs. 600. Bauxite has seen a sharp rise, with the non-metallurgical grade now set at Rs. 180 per tonne, up from Rs 116. Metallurgical-grade Bauxite will attract 2% of London Metal Exchange Aluminium prices, estimated at around Rs. 2000 per tonne. Limestone rates have gone up from Rs. 40 to Rs. 100 per tonne. Gold, Copper and lead will be charged between 2% and 8.5% of LME prices. Graphite’s cess has increased from Rs. 30 to Rs. 250 per tonne, and Kyanite has been fixed at Rs. 250 per tonne. Uranium will carry a cess equal to 1% of the annual compensation amount received by UCIL.
Also Read: Jharkhand High Court Ordered the State to Refund 113 Crores to BCCL
State’s Revenue Strategy and Sector Outlook
The revised cess structure indicating the Government’s attempt to strengthen non-tax revenue amid rising fiscal requirements. Sources said that the rates have been calibrated to balance revenue needs with the capacity of mining companies, operating in the State. The updated cess regime is expected to enhance the State’s financial position.
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