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The Cabinet on Thursday approved the long-term demand by the coal-bearing states and the increase, it said ill result in a revenue rise for coal bearing states by an average of 17.3% and a total of Rs. 1050 crore per annum.
Since 2007, the Government had not increased the royalty on coal and lignite and in 2010, following a demand by the states it set up a panel to look into the issue which recommended to increase the royalty to 14% flat.
Coal-bearing states such as Odisha, Andhra Pradesh, Jharkhand and Tamil Nadu are expected to be benefitted from the recent royalty hike.