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Coal royalty revision after study group's recommendation

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BS Reporter Kolkata/ Berhampur

The Government of India will revise the coal royalty rates after examining the recommendations of the study group of the Ministry of Coal.

The study group, constituted by the ministry has already collected the views and comments of all the concerned stakeholders through questionnaires as well as direct meetings.

“The study group is presently analyzing various suggestions received from the stakeholders. The new royalty rates would be announced by the government after examining the recommendations of the study group,” Union minister of state for coal Pratik Prakashbapu Patil told Rajya Sabha member Renubala Pradhan in a written reply.

The minister said under Section 9 (3) of the Mines and Minerals (Development and Regulation) Act-1957, the Central government was empowered to amend the Second Schedule to the Act so as to enhance or reduce the rates of royalty on minerals including coal, once in three years as specified in Schedule-I of the said Act.

 

The rate of royalty on coal was last revised with effect from August 1, 2007. The revised royalty rate is applicable to all states including Orissa, the minister said.

In the last three years (2008-09 to 2010-11), the coal companies have paid royalty of Rs 15,745.70-crore to nine states including Orissa, the minister informed in his written reply.

While Jharkhand got a royalty of Rs 3,495.97 crore during the period, West Bengal got the least amount at Rs 28.30 crore.

Orissa recorded a coal royalty collection of Rs 2,571.66-crore during the period. While the state got Rs 762.14 crore in 2008-09, the amount increased to Rs 881.08 crore in 2009-10 and rose to Rs 928.44-crore in 2010-11, the minister said.

The royalty received by other coal bearing states during 2008-09 to 2010-11 are Maharashtra (Rs 1,515.78 crore), Madhya Pradesh (Rs 2,950.68 crore), Chhattisgarh (Rs 2,827.28-crore), Uttar Pradesh (Rs 411.79 crore), Assam (Rs 80.83-crore) and Andhra Pradesh (Rs 1,863.41 crore), the minister added.

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First Published: Aug 19 2011 | 12:41 AM IST

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