BHUBANESWAR: The Centre has made it clear that there is no plan to increase royalty on coal and non-coal minerals for states like Odisha. Replying to a question from Sasmit Patra (BJD), Union Minister for Coal and Mines Pralhad Joshi told Rajya Sabha that at present, states concerned are collecting royalty at 14 per cent (pc) ad-valorem on price of coal.
In addition, contribution towards District Mineral Foundation (DMF) at 30 pc of the royalty in respect of mining leases granted before January 12, 2015 and 10 pc on or after January 12, 2015 is also being collected by the states.
The Minister said due to ad-valorem nature of rates of royalty, there is increase in revenue to the coal producing states as and when price of coal increases. The decision has been taken basing the report of a study group constituted on July 21, 2014 for examining the issue of revision of royalty rates on coal and lignite.
The study group had submitted its report suggesting no change in the rates of royalty which the Centre accepted, he said. Chief Minister Naveen Patnaik during a virtual meeting with Joshi and Union Minister Dharmendra Pradhan in December 2020 had made a strong plea for revision of royalty for coal and non-coal minerals.