New Delhi: The State of Odisha has garnered Rs. 3881.796 crore in coal royalties for the financial year 2023-24, according to provisional data. This substantial revenue is a result of the 14% ad-valorem royalty rate on coal, which has remained unchanged since its establishment by the notification dated May 10, 2012.
The steady royalty rate has been instrumental in ensuring consistent revenue for Odisha, reflecting the state’s significant coal production over the past decade. This 14% ad-valorem rate applies uniformly across all Indian states, except West Bengal, where the royalty ranges from Rs. 7.00 to Rs. 2.50 per tonne based on the grade of coal.
Section 9(3) of the Mines and Minerals (Development and Regulation) Act empowers the Central Government to amend the Second Schedule through a notification in the Official Gazette, thus adjusting the royalty rates for any mineral. However, it stipulates that any increase in the royalty rate cannot occur more than once within a three-year period.
Union Minister of Coal and Mines, Shri G. Kishan Reddy, shared this information in a written reply in the Rajya Sabha today. He highlighted the critical role these royalties play in bolstering state revenues and underscored the regulatory mechanisms that govern potential revisions to these rates.