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Centre rejects State’s demands to revise coal royalty

coal royalty

Bhubaneswar: Following Odisha Chief Minister’s demand for revising coal royalty earlier this July, Union Government on Tuesday rejected state’s plea saying that it would adversely affect the consumers. Besides the issue being a national one cannot be dealt with while looking at only one state, Anil Swarup, Union Coal Secretary said  after a meeting with the CM here on Tuesday.

“Coal royalty cannot be increased as of now. Since it is a national issue the decision to revise royalty relies on centre. So it cannot be revised while looking at the pleas of a single state,” Swarup said.

“Moreover if royalty is increased it will hike electricity charges and consequently adverse scenarios for consumers,” he added.

Earlier on July CM had written a letter to the PM asking him for personal intervention to solve out the issue and so that coal royalties get an early revision.

Volunteering for most coal abounding states, Patnaik had said since coal bearing states contribute more to the power packed industrial sectors than any other they deservedly have more expectations from these sectors as such states also have to deal with myriad adverse effects of mining.

For the last four years the coal royalty has stayed put at about 14 per cent Ad valorem. Even with the Union Government setting up a study group to consider revision of rates since 2014, findings are yet to be clarified, sources said.

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