Left Menu
Development News Edition

Raising coal royalty may affect power tariff: coal secretary

PTI | Bhubaneswar | Updated: 13-09-2019 22:26 IST | Created: 13-09-2019 22:26 IST
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.

Odisha gets around Rs 1,100 to Rs 1,400 crore per annum from coal royalty and Odisha has taken up the issue of royalty revision with the Centre on several occasions in the past. In March this year, Chief Minister Naveen Patnaik had asked the Centre to revise the rate of royalty on coal from the present 14 per cent to 20 per cent.

While the rate of royalty on coal has remained unchanged for the last seven years, the rate of clean energy cess levied on coal by the Centre was raised from Rs 50 per tonne to Rs 400 per tonne during this period, Patnaik had argued. The state government has also been demanding a share of at least 60 per cent of clean energy cess to deal with negative externalities of coal mining.

Later in a review meeting, Choudhuri asked the department and agencies concerned to expedite coal production. In another stakeholder consultation meeting, he urged coal producers to operationalise their mines within two years from the date of allocation..



Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Rwanda’s COVID-19 response commendable but health information system needs improvement

Rwanda is consistently working to improve its health information system from many years. However, it is primarily dependent on the collection and reporting of health data on a monthly basis. Besides, evaluation studies on Rwandas HIS publis...


Latest News

New York says new cluster of Brooklyn COVID-19 cases causes 'significant concern'

New York Citys Health Department has identified a new cluster of COVID-19 cases in Brooklyn, and said on Tuesday a marked uptick in infections there and in some other neighborhoods is cause for significant concern. Four areas have seen a la...

Tesla's Elon Musk promises dramatic cuts in electric car costs, shares plunge

CEO Elon Musk outlined Tesla Incs plans to cut electric vehicle battery design and manufacturing costs so radically that a 25,000 car that drives itself will be possible, but the automakers shares tumbled as Musk forecast the change could t...

U.S. House Democratic leaders eye Tuesday vote on bill to avoid shutdown

The Democratic leader of the U.S. House of Representatives announced on Tuesday an agreement with Republicans on a stopgap funding bill to keep the government operating, with a vote expected later in the evening. With government funding run...

US House approves bill to ban imports from China's Xinjiang

The US House of Representatives on Tuesday overwhelmingly approved legislation that would effectively ban imports from Chinas Xinjiang Uighur autonomous region due to the suspected use of state-sponsored forced labour there. The US bans the...

Give Feedback