BHUBANESWAR: Chief Minister Naveen Patnaik on Sunday reiterated the demand for revision of rate of royalty on coal and hinted that Central apathy is likely to be a campaign issue for the ruling BJD in the upcoming General Elections, the dates of which were also announced on the day.
“It is once again requested that the Central Government may expedite decision on this critical issue duly taking into account the long pending claim of the State Government to revise rate of royalty on coal from the present 14 per cent to 20 per cent,” Naveen said in a letter to Union Minister for Railways and Coal Piyush Goyal.
Expressing unhappiness over the issue, the CM said, “It is disheartening to learn from your February 25 letter that the final recommendation of the study group on coal royalty revision submitted on February 5 last year is still under consideration of the Centre.”
While the rate of royalty on coal has remained unchanged for the last six years (though the MMDR Act permits its revision every three years), the rate of clean energy cess levied on coal by the Centre was raised from `50 per tonne to `400 per tonne during this period, said Naveen.
The CM said since the introduction of clean energy cess on coal from 2010-11, the Centre has collected about `17,300 crore up to March, 2018 whereas during this period, the royalty received by the State is only around `11,000 crore. “As the State Government has been requesting for a share of at least 60 per cent of such funds to deal with negative externalities, the demand may be considered by the Centre early,” he said.
Besides, Naveen raised the issue of non-payment of compensation of `8297.77 crore by Mahanadi Coalfields Limited (MCL) towards the cost of about 180 million tonne of coal extracted in excess of the permissible limits under environment clearance and demanded that the Central PSU should be asked to make the payment urgently.
The CM also requested that the MCL should be advised to complete sand stowing of two closed underground mines which pose the threat of soil subsidence.
MCL has already utilised about 10,000 hectare of land under CBA Act for mining activities.In its two underground mines closed since 1998 and 2006 respectively, MCL has completed sand stowing work of 5.38 lakh cum against the total requirement of over 9.15 lakh cum.