Coal royalty collection dips

LOW coal production in Talcher coalfield has adversely affected collection of coal royalty in the State. According to Deputy Director of Mines of Talcher, L D Nayak, the royalty collection by the end

Published: 06th March 2017 07:35 AM  |   Last Updated: 06th March 2017 07:35 AM   |  A+A-

By Express News Service

TALCHER: LOW coal production in Talcher coalfield has adversely affected collection of coal royalty in the State. According to Deputy Director of Mines of Talcher, L D Nayak, the royalty collection by the end of last month stood at Rs 772 crore as against the target of Rs 899 crore. It is also Rs 43 crore less than the last year’s collection by this time, which stood at Rs 815 crore from Talcher.

Royalty is collected by the State at the rate of 14 per cent on the sale price of coal. Coal royalty has been one of largest revenue accruals to the State coffers.

Nayak, however, said the collection has been affected due to less coal production at Talcher. He added that efforts are on to make up for the shortfall in the remaining period. Apparently, the State Government has fixed the target of royalty at Rs 1,000 crore in the current financial year. “We are trying hard to reach Rs 920 crore or a little more. In the last financial year, the target was Rs 960 crore when the collection was posted at Rs 985 crore,” he said.

There are eight mega open cast and two underground coal mines at Talcher, which accounts for 60 per cent of coal output of Mahanadi Coalfield Limited. This year, due to non-availability of land and other problems, five mines - Balram Ananta, Jaganath and Bharatpur and Kaniha - are reporting low production till date.

According to a top MCL official, the annual target for Talcher was fixed at 105.65 million tonne but by the end of the last month,  it achieved 72 MT. This is also less than last year’s production achieved by this period, he said.

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