Lok Sabha Question No. 3506 (UNSTARRED), answered on 2021-03-17
Subject: Coal Royalty
Ministry: COAL
Asked by: Chandra Sekhar Sahu, Sudheer Gupta, Shrirang Appa Barne, Rajendra Dhedya  Gavit, Sanjay Sadashivrao Mandlik, Bidyut Baran Mahato

## Government of India Ministry of Coal

## LOK SABHA UNSTARRED QUESTION NO. 3506 TO BE PUT DOWN ON 17.03.2021 Coal Royalty

## 3506. SHRI CHANDRA SEKHAR SAHU:

SHRI SUDHEER GUPTA:

SHRI SHRIRANG APPA BARNE:

SHRI RAJENDRA DHEDYA GAVIT:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI BIDYUT BARAN MAHATO:

Will the Minister of COAL be pleased to state:

- (a) the year in which rate of royalty on coal was revised by the Government;
- (b) whether the Government has fixed any guidelines for revision of rate of royalty on coal in the country and if so, the details thereof;
- (c) whether Study Group constituted by the Government to consider revision of rate of royalty on coal has submitted their report;
- (d) if so, the action so far taken by the Government thereon;
- e) whether the coal rich states have been penalized for not achieving stiff RPO targets and also delay in revision of royalty on coal; and
- (f) if so, the details thereof and the reasons therefor; and
- (g) the corrective steps taken by the Government for protection of coal rich states?

## ANSWER MINISTER OF COAL, MINES AND PARLIAMENT AFFAIRS (SHRI PRALHAD JOSHI)

- (a) The rates of royalty on coal was last revised w.e.f. 10.05.2012 on the recommendation of a Study Group constituted under the Chairmanship of Additional Secretary, Ministry of Coal after  due  consultation  with  all  the  stakeholders.  As  per  the  Gazette  notification  dated 10.05.2012, the rate of royalty on coal (except the State of West Bengal) was revised at 14% ad-valorem.
- (b) Under Section 9(3) of the Mines and Mineral (Development and Regulation) Act, 1957, the  Central  Government  is  empowered  to  amend  the  Second  Schedule  of  the  Act  so  as  to enhance or reduce the rate of royalty on minerals, provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years.

(c)  A study Group was constituted on 21.07.2014 to consider revision of royalty on coal and lignite  under  the  chairmanship  of  Additional  Secretary,  Ministry  of  Coal  comprising  of members from various stakeholders.

In the meeting of the Study Group on revision of rates of Royalty on Coal held on 05.02.2018 at New Delhi after considering various factors, Study Group recommended the following :-

- 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.

(d)  The  final  recommendation  of  the  Study  group  has  been  accepted  by  the  Central Government.

(e)   Royalty of coal is revised by the Government of India, hence question of penalization of coal rich states for delay in revision of royalty on coal doesn't arise.

(f) & (g)   Does not arise in view of (e) above.

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