The cohesive demand of the coal producing states in India to hike the royalty on coal to 30%, if actuated, will no doubt raise the revenues of the states; but will also lift power tariffs, leading the common man to bear the brunt.
Power tariffs will go up by at least 7%(or, by 10-12 KWH) if the demand is accepted by the Government of India (GoI).
The GoI has constituted a study group to assess the state’s demand, after a request from the Chhattisgarh government. As a matter of fact, royalty on coal will be the highest among all minerals in the country, if the hike in royalty is put into motion.
On the other side, implementation of the proposed hike in the royalty could result in revenues of the top three coal producing states going up in between INR 5 billion to INR 39 billion.
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