India aims to reduce import dependence and vulnerabilities in the supply chain of critical minerals. The Union Cabinet approved on Wednesday, 12 November, the rationalisation of royalty rates of graphite, caesium, rubidium, and zirconium.
According to the rationalisation structure, the royalty was previously sought on a per-tonne basis for graphite (i.e., a fixed amount for a specific weight of ore). It would now be charged according to value. Graphite with a fixed carbon content of less than 80% would be subject to a 4% royalty of the average sale price, while that with 80% or more carbon content would draw a 2% royalty.
Caesium and rubidium would be subjected to a royalty rate of 2% on the average sale price based on the metal contained in the ore produced. A royalty rate of 1% would apply to zirconium. Caesium is used in atomic clocks, GPS systems, and medical instruments required in cancer therapy, among other applications.Â
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Rubidium is used in creating specialty glass utilised in fibre optics, telecommunication systems, and night vision devices, etc. Zirconium is used as a cladding material for fuel cylinders in nuclear reactors, as well as in other industries, including aerospace and healthcare.
