Raipur : Royalty rate of coal should be revised: Bhupesh Baghel

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Raipur, 7 January 2022. Chief Minister Mr. Bhupesh Baghel strongly presented his stand on various topics related to the interests of Chhattisgarh in a virtual meeting held with Union Minister of Coal and Mines Mr. Prahlad Joshi, at his residence office today. Chief Minister urged Union Minister to release Chhattisgarh’s share of additional levy on coal blocks worth Rs 4169.86 crore as soon as possible. He demanded increase in the rates of coal royalty and to notify the royalty rates of ROM of iron ore from the mines. He said that large quantities of fine iron ore are deliberately produced in the mines. Due to the huge difference in the royalty of lumps and fines, the state government suffers huge loss in royalty.
During the meeting, Chief Minister said that royalty rates for coal have not been revised after 2014, due to which the state is losing revenue. Requesting Union Minister to increase the rate of royalty from 14 percent to 16 percent, he said that Coal India should declare the basic sale price every three months. He added that Central Government needs to look at the matter related to royalty in a holistic manner. Coal producing states are suffering. Being a producer state, Chhattisgarh will not get GST compensation from June 2022. Prior to this, Chhattisgarh would suffer a loss of about Rs 5000 crore in the first year. This loss will increase further in the coming year.
Chief Minister said that he had also raised this matter with the Union Finance Minister, and the Chief Ministers of Himachal and other states had supported his stand. Chief Minister said that when the prices of petrol and diesel are increasing every day, then why can’t the royalty of coal increase. He said that Chhattisgarh has industries along with mines. But Chhattisgarh is neither benefiting from the mines nor from the industries. He said that our forests and land go to mines and all the state gets in return is steep rise in pollution. Under such circumstances, this policy is proving to be discouraging to the process of industrialization.
Union Minister Mr. Joshi assured that the issues raised by Chhattisgarh Government would be considered sympathetically. He appreciated the Government of Chhattisgarh for making the first commercial coal mines operational. Secretary, Mineral Resources Department of Chhattisgarh, Mr. Siddharth Komal Singh Pardeshi informed in the meeting that State Government has aunctioned two limestone blocks and the process of auction of 6 lime stone blocks is in progress. In addition, new blocks including one of bauxite and one of iron ore are also up for auction.
In the meeting, Chief Minister persuasively presented the issues related to various coal mines of Chhattisgarh before the Union Minister and urged for their early disposal. He said that Gidhamuri-Paturia coal block and Madanpur South coal block, being under Lemru Elephant Reserve, would not be considered for auction and quarrying. He also urged to keep iron ore block of Kabeerdham reserved for Chhattisgarh Mineral Development Corporation. In the presentation given during the meeting, it was informed that new blocks of limestone, iron ore and bauxite would be auctioned.
Chhattisgarh Principal Secretary Forest Mr. Manoj Kumar Pingua, Secretary, Mineral Resources Department, Siddharth Komal Singh Pardeshi, Principal Chief Conservator of Forests Mr. Rakesh Chaturvedi, Director Mineral Resources Mr. Jaiprakash Maurya were present in the meeting.