|
The royalty rates on coal were fixed on tonnage basis when it was revised last on August 16, 2002 based on the recommendations of a study group constituted for the purpose. The Government has decided to consider revision of royalty rates of coal on advalorem basis at the time of the next revision of royalty rates on coal. Section 9 of Mines and Minerals (Development & Regulation) Act, 1957 stipulates that upward revision can be done only after three years. As such next upward revision can be effected only after August 15, 2005.
Coal Ministry has received requests from State Governments of Chhattisgarh, Madhya Pradesh and Orissa regarding revision of royalty rates on coal on advalorem basis. They have intimated that their states are losing revenue on account of collection of royalty on coal on tonnage basis and have requested the Central Government to fix royalty rates of coal on advalorem basis.
This information was given by the Minister of State for Coal & Mines, Dr. Dasari Narayana Rao, in a written reply in the Rajya Sabha today.
DS/SCH
|
