Thursday, February 25, 2010

Royalty rates of Coal

The Government have constituted a new Study Group under the Chairmanship of Additional Secretary (Coal) on 04.02.2010 for considering the issue of next revision of royalty rates of coal and lignite. The royalty rates on coal and lignite were last revised w.e.f. 01.08.2007.

Section 9(3) of the Mines and Minerals (Development & Regulation) Act, 1957 empowers the Central Government to enhance or reduce the royalty rates in respect of any mineral by notification in the Official Gazette with effect from such date as may be specified in the notification. The proviso to Section 9(3) of the said Act prevents the Central Government from enhancing the rate of royalty in respect of any mineral more than once during any period of three years. Since the royalty rates on coal and lignite were last revised w.e.f. 01.08.2007, the rates could not have been enhanced again during the interim period in view of the restriction imposed under the proviso to Section 9(3) cited above. Therefore, the question of loss on account of non-revision of royalty rates on coal during the last three years does not rise.

This information was given by Minister of State (Independent Charge) for Coal, Shri Sriprakash Jaiswal in a written reply in the Lok Sabha today.

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