Lok Sabha Question No. 4460 (UNSTARRED), answered on 2022-03-30
Subject: Coal Royalty
Ministry: COAL
Asked by: Gaddam Ranjith Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO. 4460 TO BE ANSWERED ON 30.03.2022

## Coal Royalty

## 4460. DR. G. RANJITH REDDY:

Will the Minister of Coal be pleased to state:

- (a) the details of royalty given on coal to various States during the last ten years, year and State-wise;
- (b) Whether there have been demands among the coal bearing States to increase royalty on coal; and
- (c)  if so, the action taken by the Government in this regard?

## ANSWER

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

- (a): The details of royalty given on coal to various States during last 10 years, year and Statewise is as under :

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|                   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   | Amount in crores   |
|-------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| Name of the State | 2011- 12           | 2012- 13           | 2013- 14           | 2014- 15           | 2015- 16           | 2016-17            | 2017-18            | 2018-19            | 2019-20            | 2020-21            |
| Chhattisgar h     | 1236.1 9           | 1766.3             | 1887.3 6           | 1804.9 3           | 1856.8 6           | 1959.74            | 2319.56            | 2632.19            | 2350.21            | 2292.88            |
| Jharkhand         | 1681.3 2           | 2129.6 6           | 2169.1 8           | 2213.0 3           | 2659.0 4           | 2819.89            | 3715.5             | 3778.78            | 3211.03            | 2879.95            |
| Odisha            | 1045.9 2           | 1242.8 7           | 1349.6 8           | 1416.5 6           | 1698.1 5           | 1666.2             | 1754.53            | 2024.15            | 2139.45            | 1519.31            |
| Madhya Pradesh    | 1018.9 8           | 1498.4 1           | 1522.8             | 1825.8 7           | 1793.4 5           | 1827.48            | 2012.09            | 2237.85            | 2069.38            | 3199.42            |
| Maharashtr a      | 556.03             | 734.64             | 792.96             | 898.24 9           | 895.73             | 759.01             | 998.48             | 1183.33            | 1198.8             | 1153.85            |
| Andhra Pradesh    | 769.06             | 1183.5 8           | 1146.5 6           | 0                  | 0                  | 0                  | 0                  | 0                  | 0                  | 0                  |
| Telangana         | 0                  | 0                  | 0                  | 1341.0 6           | 1560.9 4           | 1440.55            | 1797.23            | 2400               | 1537.36            | 1429.74            |
| West Bengal       | 11.53              | 15.74              | 17.213             | 16.4               | 13.93              | 20.19              | 16.93              | 18.76              | 18.96              | 12.64              |
| Assam             | 27.19              | 43.49              | 41.15              | 49.48              | 21.55              | 35.45              | 45.07              | 44.82              | 31.34              | 5.89               |

| UP                |   181.94 |   236.98 |   266.13 |   250.61 |   236.96 |   309.45 |   352.09 |   426.23 |   406.39 |   638.23 |
|-------------------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|
| Arunachal Pradesh |     5.7  |     0.99 |     0    |     0    |     0    |     0    |     0    |      0   |      0   |      0   |
| Meghalaya         |   237.88 |   328.65 |   416.33 |   157.22 |     0.09 |   389.18 |   114.55 |      0   |      0   |      0   |
|                   |  6771.7  |  9181.3  |  9609.3  |  9973.4  | 10736    | 11227.1  | 13126    |  14746.1 |  12962.9 |  13131.9 |
| Total             |     4    |     1    |     6    |     1    |     7    |     4    |     3    |      1   |      2   |      1   |

(b  &  c): Yes,  some  of  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%.

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%)}.

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.

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