Coal news and updates

Union Coal Secretary Anil Swarup today rejected the state government's demand for revision of coal royalty this year saying it will adversely affect the consumers. "Hike in coal royalty is a national decision and it cannot be done for considering the case of one state.

 

Besides, there is no proposal now for such a revision," Swarup told reporters after meeting Chief Minister Naveen Patnaik at the state secretariat here. The Union Secretary said that increase in coal royalty will result in power tariff hike which will adversely impact the consumers. Therefore, the Coal Ministry has decided not to raise the coal royalty. The Chief Minister is stated to have raised the twin issues of royalty hike and a share from the Clean Energy Cess collected from coal by the Centre.

 

Earlier in July, the state government had requested the Centre to revise the coal royalty without further delay and share at least 60 percent of the Clean Environment Cess with coal bearing states. Writing to Prime Minister Narendra Modi, the Chief Minister said that the rate of royalty for coal, fixed at 14 per cent ad valorem, had not been revised for more than four years even though the Ministry of Coal has constituted a study group to consider revision of rates of royalty on coal on July, 21, 2014.

 

During his recent visit to New Delhi, Patnaik had raised the issue with Finance Minister Arun Jaitley and reminded him that royalty on coal was due for revision in April, 2015. While the rate of royalty remained unrevised, the Centre has levied Clean Environment Cess of Rs 400 per ton, he said.

 

The Chief Minister has been demanding a substantial share from the the Clean Energy Cess fund to coal bearing states like Odisha which are bearing the brunt of negative externalities of coal mining and coal based thermal power plants. Swarup reviewed the progress of the coal blocks allotted to private sectors and the coal production in the state with senior officers at a high level meeting here chaired by Chief Secretary A P Padhi

SOurce:New Indian Express