STATES TO GET INCREASED ROYALTY
Cabinet Committee on Economic Affairs
gave its approval to the proposal of Ministry of Coal and Mines
on July 29, 2002 to revise the rates of royalty on coal. The new
rates of royalty continue to be on per tonne basis. At current
prices of coal, the incidence of royalty ranges from 15% to 19%
as against the prevailing average of 12.76%.
The new rates of royalty will
not apply to the State of West Bengal, which is levying a cess
of around 25% on coal produced in that State. These cess laws
have been struck down by the Calcutta High Court, but an SLP filed
by the West Bengal Government is pending in the Supreme Court.
The following are the rates of royal on coal
from 1981 to-date:
(Rs. Per tonne)
|
Royalty Group
|
Rates in 1981
|
Rates in 1991
|
Rates in 1994
|
Rates approved on 29.7.02
|
|
I
|
7.00
|
150
|
195
|
250
|
|
II
|
6.50
|
120
|
135
|
165
|
|
III
|
5.50
|
75
|
95
|
115
|
|
IV
|
4.30
|
45
|
70
|
85
|
|
V
|
2.50
|
25
|
50
|
65
|
|
VI
|
5.00
|
70
|
75
|
90
|
The royalty earnings of coal
producing States in aggregate are likely to register an increase
as given below. It will increase with the increase in production
in subsequent years.
(In crore)
|
State
|
Existing Royalty
|
Increased Royalty
|
Difference
|
|
Jharkhand
|
571.08
|
704.34
|
133.26
|
|
Orissa
|
242.56
|
310.34
|
67.78
|
|
Madhya Pradesh
|
352.55
|
427.77
|
75.22
|
|
Chhattisgarh
|
319.43
|
404.59
|
85.16
|
|
Uttar Pradesh
|
149.17
|
181.61
|
32.44
|
|
Maharashtra
|
210.00
|
254.97
|
44.97
|
|
Andhra Pradesh
|
227.06
|
272.43
|
45.37
|
| |
2071.85
|
2556.05
|
484.20
|
