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Andhra Pradesh likely to adopt Rajasthan model of Royalty Collection Contract


The Andhra delegation at the Directorate of Mines and Geology department in Udaipur on wednesday.

Udaipur : Owing to its ease and profitability, Andhra Pradesh is likely to  adopt the Rajasthan model of Royalty Collection Contract for minerals. A state team of delegates comprising officials of the Mines and Geology department and Granite Association from Andhra Pradesh is here on a three-day official visit to study and assess the system adopted by Rajasthan government to determine the royalty and excess royalty collection contracts for major and minor minerals.

The team interacted with the experts and authorities at the Directorate of Mines and Geology here in Udaipur on Wednesday. A power point presentation was facilitated by the local officers to appraise them of the royalty collection system prevalent here.

“In Rajasthan, the royalty rates are determined weight based i.e. per ton, however, in Andhra Pradesh the criteria for measurement is per cubic foot. There’s is a much strenuous and cumbersome process that requires long time to measure each block while our system is convenient and profitable in terms of revenue collection” Anil Khamesra, SME (superintendent mining engineer) told Udaipur Kiran. They do not follow contract system and the royalty rates too are said to be too high. Rajasthan’s model of royalty collection contracts has been rated best in terms of ‘ease of doing business’ in comparison to systems prevalent in other states, claimed SME Madhusudan Paliwal. The delegation also took a field visit to the department’s excess royalty toll collection point at Titardi to get an understanding of the working process.

Andhra Pradesh is well known globally for variety of rocks & minerals and called as ‘Ratna Garbha’, a State endowed with variety of minerals.It is a repository of many minerals and contains varieties of Litho units/ Rocks, which contain host of industrial and non-industrial minerals.


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