National News

Raising Coal Royalty May Affect Power Tariff: Coal Secretary

Bhubaneswar: Union Coal Secretary Sumanta Choudhuri Friday mentioned the Centre has to suppose critically earlier than deciding on the demand to lift the speed of coal royalty.

Coal bearing states like Odisha are demanding that the Centre improve the royalty on the gas.

“We have to keep in mind that coal is mostly used as a raw material in thermal power plants across the country. In case the price of coal increases due to revision of royalty, the power tariff may have to be enhanced,” Choudhuri advised reporters after a gathering with Odisha Chief Secretary AK Tripathy.

There must be a steadiness between the coal royalty revision and energy tariff, Choudhuri mentioned.

Tripathy had earlier mentioned Odisha has been shedding a large quantity of income because of delay in revision of the coal royalty. The coal royalty was final revised in 2012.

Based on the prevailing provisions of the MMDR (modification) Act, the Centre ought to revise coal royalty in each three years. Subsequently, it ought to have been accomplished in 2015, a senior official mentioned.

Odisha will get round Rs 1,100 to Rs 1,400 crore each year from coal royalty and Odisha has taken up the problem of royalty revision with the Centre on a number of events up to now.

In March this 12 months, Chief Minister Naveen Patnaik had requested the Centre to revise the speed of royalty on coal from the current 14 per cent to 20 per cent.

Whereas the speed of royalty on coal has remained unchanged for the final seven years, the speed of fresh power cess levied on coal by the Centre was raised from Rs 50 per tonne to Rs 400 per tonne throughout this era, Patnaik had argued.

The state authorities has additionally been demanding a share of at the very least 60 per cent of fresh power cess to take care of damaging externalities of coal mining.

Later in a overview assembly, Choudhuri requested the division and businesses involved to expedite coal manufacturing.

In one other stakeholder session assembly, he urged coal producers to operationalise their mines inside two years from the date of allocation.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker