BHUBANESWAR | Aug 03, 2016: The state government has lost huge revenue due to non-revision of royalty on coal by the Centre. The royalty was last revised on April 2012 amd fixed at 14%. The state earns around Rs 1,000 to Rs 1,200 crore annually and the percentage is supposed to be revised every three years.

Even though the Centre has constituted a study group in July 2014 to consider the revision of royalty on coal, it is yet to come out with definite suggestions.

"It is unfortunate that the Centre has doubled the cess on coal (National Clean Energy Fund) from Rs 200 to Rs 400 per tonne while it has deprived the states of getting its due by not revising the royalty. I have raised the issue during the mines ministers' conference held in Jaipur in May. The Centre seems to be in no mood to revise the royalty," said steel and mines minister Prafulla Mallik.

Earlier, chief minister Naveen Patnaik requested Prime Minister Narendra Modi to revise the royalty on coal. Revision of royalty on coal is essential as revenue collection from mining and metal sectors has dipped to Rs 900 crore against the target of Rs 1,400 crore after the first quarter of the current fiscal (April-June). For the 2016-17, state expects to generate Rs 6,700 crore from mining and metal sector.

Odisha also urged the Centre to share 60% of the clean energy fund with coal-bearing states to take up different development activities. While people in coal-bearing areas bear the brunt of waste, pollution and displacement, the Centre spends the clean energy fund on western states of the country for development of renewable energy, Mallik said.

The state government has also objected to the Centre's decision for provision of contribution of coal lessees towards District Mineral Foundations from October 20, 2015, instead of January 12, 2015 as happened in case of non-coal minerals.

(Source: http://timesofindia.indiatimes.com/)