Coal Royalty to Stay Stagnant at 14%

There will be no hike in the coal royalty as the Government of India has no plan to revise the royalty, the Coal Secretary of India assured during his recent visit to Odisha.

The Odisha government had in July’16 requested the central government to raise the coal royalty from the existing 14% in view of the fact the royalty has remained stagnant during the last four years.

But, considering the impact of any rise in the royalty, especially on power tariff, the GoI has restricted itself from imposing any hike on the royalty. According to the Coal Secretary, hike in the royalty will result in power tariff going up, which will adversely affect consumers.