Jindal Group, the single largest private investor in Chhattisgarh, had been served notices by the state government to pay the due royalty on coal that it had been mining in Raigarh district.
While the Jindal Steel and Power Limited (JSPL) had to pay about Rs 10.64 crore, the government had to recover Rs 7.48 crore from the Jindal Power Limited (JPL).
The other three companies include Monnet Ispat and Energy Limited (Rs 2.55 crore), Jaiswal Neco (Rs 90 lakh) and Sarda Energy (Rs 40 lakh).
The five companies were mining coal in Gharghora area of Raigarh district. The state government has to recover about Rs 22 crore from these companies as due royalty.
“The companies were served notices to pay the due royalty following the Comptroller and Auditor General (CAG) pointing out issue,” Raigarh District Mining Officer Kundanlal Banjare said.
They have been asked to pay the pending dues accounted for the period between August 1, 2007 and March 31, 2011 at the earliest, the official added.
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The officials with the industry department said that during the period, the Union Government had revised the royalty on coal from time to time. But the five companies engaged in mining operations in Raigarh continued to pay the royalty according to the old rates and did not abide by the revised price.
“The state-run largest coal producing company of the country, South Eastern Coalfields Limited (SECL) started paying the royalty according to the revised rate to the state government but the private companies avoided to follow the same,” a senior official with the industry department said.
The companies should have immediately started paying the royalty as per the revised rate, the official added.
Ironically, the state government’s mining department failed to take action against the private companies for four years.
It acted only when the CAG pointed out the matter.