Bhubaneswar: Union Minister of Coal Pralhad Joshi on Wednesday stated that the Centre has no plan to increase coal royalty rate. Some coal-producing States had demanded increase in the rates of Royalty. In this regard, a Study Group was constituted on 21.07.2014 for the purpose of examining the issue of revision of royalty rates on coal and lignite.
“The study group inferred from the comments of the stakeholders that the coal producing States had suggested to increase the rates of royalty from existing 14% to roughly 20%, whereas the coal consuming stakeholders suggested to reduce the present rate of royalty from 14% to roughly 5-6%,” Joshi stated in a written reply in the Lok Sabha today.
During 2020-21, Odisha received coal royalty of Rs 1519.31 crore while in 2019-20, the State received 2139.45 crore. During 2020-21, the Centre gave Rs 13131.91 crore as coal royalty to 12 coal producing states.
The Study Group after considering all factors had submitted its report suggesting no change in the rates of royalty as after levy of DMF @ 30% on royalty and NMET @ 2% of Royalty, effective rate works out as 18.48% i.e. {(14%+ 4.2 (30% of 14%) + .28 (2% of 14%)}, he added.
Accordingly, the Study Group has recommended as under:
(i) No change is proposed in rates of royalty on coal from the rates notified vide notification no. G.S.R. 349 (E) dated 10.05.2012. The rate of royalty on coal produced in all States and Union Territories, except the State of West Bengal, may be kept unchanged i.e. @ 14% (Fourteen Percent) ad-valorem on price of coal, as reflected in the invoice, excluding taxes, levies and other charges.
(ii) No change is proposed in rates of royalty on coal produced in the State of West Bengal and royalty thereon may be kept unchanged as rupee per tonne, as notified under G.S.R 349 (E) dated 10.05.2012.
The recommendation of the Study group has been accepted by the Government and at present Government has no plan to increase the rate of royalty.
