Odisha to benefit from coal royalty increase

Bhubaneswar: The Government of India has increased the royalty on coal and lignite to flat 14% and 6% respectively of the pithead price from a previous 10-14% depending partly on the grade of the materials.


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.