Centre, states to incur Rs 12k cr revenue loss in FY21 on lower coal, mineral consumption: Report

The Centre and key mineral producing states are likely to incur a revenue loss of up to Rs 12,000 crore in FY21 due to lower coal and mineral consumption during the coronavirus lockdown, a report said on Friday.

"As per our estimates, the top five mineral producing states are likely to see an impact of around Rs 3,000-3,500 crore in all, due to decline in offtake of minerals (other than coal).

"Correspondingly, just from these 5 states (Odisha, Rajasthan, Chhattisgarh, Andhra Pradesh and Karnataka) the Central government is also expected to lose Rs 1,000-1,500 crore - as its share of taxes such as NMET, CGST and Corporate tax - due to fall in mineral sales (excluding coal) in these 5 states," KPMG in India said in its thought paper titled 'Impact of COVID-19 on the mining sector in India'.

With regard to coal producing states, it said "the overall losses incurred by all the state governments combined is estimated to be around Rs 4,500 - 5,000 crore. And the overall loss that the central government would be facing in FY21 is estimated to be around Rs 1,800 - 2,000 crore."