Coal Minister Pralhad Joshi on Friday said there is a need for "larger consultation" before deciding on the revision of coal royalty, as the matter is directly linked to power tariff and increase in royalty may affect electricity consumers across the country.
After a meeting with Odisha Chief Minister Naveen Patnaik here, Joshi said the Centre will look at the demand of the state for upward revision of coal royalty.
"I have briefed the chief minister about coal royalty revision. It is linked to power tariff. He has given a representation. It needs larger consultation because whatever we apply or decide will be applicable for the entire country," he said.
Many coal bearing states including Odisha have been demanding revision of coal royalty from the present 14 per cent to 20 per cent.
The Mines and Minerals (Development and Regulation) Act permits revision of royalty on coal every three years, but it has remained unchanged for the last six years, Patnaik told the Union minister during the meeting.
The chief minister drew Joshi's attention on the fact that the final recommendation of the study group on coal royalty revision was still under consideration of the central government, though it was submitted to it way back on February 5, 2018, sources said.
Odisha produces about one-fifth of the total coal production in the country.
Asked about Odisha's concern of losing a huge amount due to non-revision of the coal royalty rates, Joshi said, "We have introduced the DMF four years ago. The state is getting 4.2 per cent on that. I have also brought it to the chief minister's notice. It is a larger issue for the country."
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