Raising Coal Royalty May Affect Power Tariff: Coal Secretary

Raising Coal Royalty May Affect Power Tariff: Coal Secretary

Union Coal Secretary Sumanta Choudhuri Friday said the Centre has to think seriously before deciding on the demand to raise the rate of coal royalty. Coal bearing states like Odisha are demanding that the Centre increase the royalty on the fuel.

“We have to keep in mind that coal is mostly used as a raw material in thermal power plants across the country. In case the price of coal increases due to revision of royalty, the power tariff may have to be enhanced,” Choudhuri told reporters after a meeting with Odisha Chief Secretary AK Tripathy.

There should be a balance between the coal royalty revision and power tariff, Choudhuri said.

Tripathy had earlier said Odisha has been losing a sizable amount of revenue due to delay in revision of the coal royalty. The coal royalty was last revised in 2012.

According to the existing provisions of the MMDR (amendment) Act, the Centre should revise coal royalty in every three years. Therefore, it should have been done in 2015, a senior official said.  Read More

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