(MENAFN- Live Mint) "New Delhi: The Centre on Wednesday approved royalty rate for lithium, niobium, and for Rare Earth Elements (REEs). For lithium and nobium a royalty rate of 3% each has been fixed, while for Rare Earth Elements (REEs), the rate has been set at 1%.\"The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) for specifying rate of royalty in respect of 3 critical and strategic minerals, namely, lithium, niobium and Rare Earth Elements,\" the Ministry of Mines said in a statement royalty rate approval will allow the Centre to auction lithium, niobium and REEs blocks for the first time in the country, it added Mines and Minerals (Development and Regulation) Amendment Act, 2023, came into force 17 August 2023. The amendment, among other things, delisted six minerals, including lithium and niobium, from the list of atomic minerals, thereby allowing grant of concessions for these minerals to private sector through auction, the amendment provided that mining lease and composite license of 24 critical and strategic minerals (which are listed in Part D of the First Schedule of the Act), including lithium, Nnobium and REEs (not containing uranium and thorium), shall be auctioned by the central government rate of royalty rate on minerals is crucial for auctions.
Also, the ministry of mines has devised a method to calculate the average sale price (ASP) of these minerals, which will help in determining bid parameters to the amendment, the Second Schedule of the MMDR Act mandated a royalty rate of 12% of ASP for all minerals not specifically provided a royalty rate, making them non-competitive and not on a par with global standards, it was decided to specify a reasonable royalty rate of lithium, niobium and REEs 3% royalty for lithium is based on prices at London Metal Exchange price. For niobium, the royalty has been calculated from the ASP, considering both primary and secondary sources, and REEs' royalty is based on the ASP of Rare Earth OxideCritical minerals have become essential for economic development and national security. Lithium and REEs have gained significance in view of India's commitment towards energy transition and achieving the target of net-zero emissions by 2070.
Lithium, Niobium and REEs have also emerged as strategic elements due their usages and geo-political scenario. Encouraging indigenous mining would lead to reduction in imports and setting up of related industries and infrastructure projects.
The Union cabinet also approved setting up an autonomous body Mera Yuva Bharat (MY Bharat) to serve as an overarching enabling mechanism powered by technology for youth development and youth led development and provide equitable access to youth to actualize their aspirations and build Viksit Bharat across the entire spectrum of the bovernment Cabinet approved approved the signing of the Memorandum of Understanding (MoU) between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Finance and Industrial and Digital Sovereignty of the French Republic on cooperation in the field of Digital Technologies.
It also approved the MoU on 11 August 2023 between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Digital Transformation Technology of the Republic of Trinidad and Tobago on cooperation in the field of sharing successful Digital Solutions implemented at Population Scale for Digital Transformation another decision, the Union cabinet approved an MoU signed on 28 July 2023 between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Information and Communications Technology of Papua New Guinea on cooperation in the field of sharing successful Digital Solutions implemented at Population Scale for Digital Transformation.

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