The Government of India has realised Rs 6,801 crore by way of additional levy from 31 cancelled coal blocks including Hindalco. The additional levy on such coal blocks was imposed at the rate of Rs 295 per tonne on the orders of the Supreme Court. Realisation of additional levy on the coal blocks was recommended by the Comptroller & Auditor General of India (CAG).
"The amount of Rs 560 crore with respect to Talabira I coal block is a legitimate demand of the state government. Our finance minister has raised this demand at the pre-budget consultative meeting of finance ministers. Other coal bearing states like West Bengal and Chhatisgarh have also put similar claims", said a senior government official.
"The Ministry of Coal needs to come out with a suitable advisory to settle claims of the state governments", he added.
This apart, the state government has asked the Centre to compensate coal bearing states from the negative externalities of coal mining and coal-based power generation. This can be done out of the cess collected on coal through appropriate fiscal instrument and policy measure in Union Budget 2016-17.
The central government collects clean energy cess of Rs 200 per tonne of coal to finance clean environment initiatives. At current level, the cess aggregates to Rs 6,000 crore every year. With mining activity expect to pick up after coal block auctions, the cess wold grow further.
In a study undertaken by The Energy Resources Institute (TERI) under the aegis of the Planning Commission, it has been established that externalities of coal mines and coal-based power plants are either partially compensated or not compensated at all.
According to the study, the total uncompensated cost out of coal mining and subsequent power generation by coal combustion comes to Rs 1,192 per tonne.