- By PTI
- Wed, 05 Jun 2024 06:55 PM (IST)
- Source:PTI
State-owned Coal India Ltd's contribution to the government's exchequer dropped 2.2 percent to Rs 9,560.28 crore in the April-May period of the ongoing fiscal. Coal India Ltd (CIL), which accounts for over 80 percent of domestic coal output, paid Rs 9,777.64 crore to the government exchequer in the year-ago period, according to provisional figures of the coal ministry.
Total levies paid to the government in May went up to Rs 4,763.20 crore from Rs 4,716.5 crore paid in the corresponding month of FY23.
The amount paid to the Centre and state governments includes royalties, GST, cess on coal, and other levies. Coal production generates substantial revenue for both central and state governments.
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Of the total amount paid to the government exchequer in the first two months of FY24, a maximum amount of Rs 2,122.39 crore was made to the state government of Jharkhand, followed by Rs 2,116.15 crore to the Odisha government, Rs 1,933.59 crore to Chhattisgarh, Rs 1,496.80 crore to Madhya Pradesh, and Rs 1,048.44 crore to Maharashtra among others.
State governments are entitled to receiving 14 percent of the royalty on the sale price of coal and 30 percent of the royalty as a contribution towards the proposed district mineral foundations (DMFs) -- which are meant to support people affected by various projects -- and two percent of NMET from dry-fuel produced by the coal companies and also the private sector.
In the case of captive, commercial mines, states are also entitled to receive the revenue share offered by the auction holder in a transparent bidding process. Apart from this, state governments also benefit from increased employment, land compensation, increased investment in allied infrastructure like railways, and roads,s and several other economic benefits. Coal India's production and off-take are pegged at 838 MT for FY25.
Disclaimer: This story has been directly published from the agency feed. No changes have been made.
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