No Plan To Hike Coal Royalty For Odisha: Union Minister

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Bhubaneswar: The Centre has no plan to increase coal royalty for states like Odisha, said Union Minister of Coal, Mines and Parliament Affairs Pralhad Joshi in the Rajya Sabha on Tuesday.

Replying to an unstarred question of BJD Rajya Sabha member Sasmit Patra on the steps being undertaken to revise coal royalty and whether there are any plans to increase coal royalty for states like Odisha which contribute immensely, he said the Centre through a gazette notification may amend the second schedule (which specifies rates of royalty) of Section 9(3) of the Mines and Mineral (Development and Regulation) Act, 1957, to enhance or reduce the rate at which the royalty will be payable with effect from such date provided that the rate of royalty is not enhanced more than once during any period of three years.

As such, there is no mandatory provision in the Act to revise the rates of royalty every three years, he added.

Patel further said that the Centre has accepted the report and the suggestion of the study group constituted on July 21, 2014, for the purpose of examining the issue of revision of present royalty rates, that there should be no change in the rates of royalty on coal and lignite.

Referring to the collector of royalty, he said apart from the royalty of 14 per cent ad-valorem on the price of coal, the contribution towards District Mineral Foundation (DMF) @ 30 per cent of the royalty in respect of mining leases, granted before January 12, 2015, and 10 per cent of the royalty in respect of mining leases, granted on or after January 12, 2015, is also being collected by the state government concerned.

Due to the ad-valorem nature of rates of royalty, the revenue of the coal-producing states increases as and when the price of coal increases, the Union Minister pointed out.