Coal Mining Revenue: Rs 1.52 Lakh Cr Earned in 9 Years
By Rediff Money Desk, NEWDELHI Mar 01, 2024 18:34
Coal-producing states in India generated Rs 1.52 lakh crore in revenue from royalty, DMF, and NMET over the past nine years, highlighting the significant contribution of the coal mining sector to state economies.
![Coal Mining Revenue: Rs 1.52 Lakh Cr Earned in 9 Years](https://im.rediff.com/money/2022/may/30coal3.jpg)
Photograph: Amit Dave/Reuters
New Delhi, Mar 1 (PTI) Coal-producing states earned a revenue of Rs 1.52 lakh crore in the last nine years from royalty, District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET).
State-wise and year-wise data indicate that the coal mining sector is a very significant contributor to the revenue of states including Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh, the Coal Ministry said in a statement.
"During 2014-2023, total revenue from royalty, DMF & NMET of all coal-producing states through coal mining sector is Rs 1,52,696 crore," the ministry said.
The compounded annual growth rate (CAGR) of the revenue from coal mining during 2014-2023 was 13.80 per cent, it said. Coal mining sector has proved to be a big booster for economic growth of the states that produce fossil fuel.
State governments are entitled to receive 14 per cent of royalty on the sale price of coal and 30 per cent of the royalty as contribution towards the proposed district mineral foundations (DMFs)-- which is meant to support project-affected people---and 2 per cent of NMET from dry-fuel produced by the coal companies and also the private sector.
In 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, road and several other economic benefits.
State-wise and year-wise data indicate that the coal mining sector is a very significant contributor to the revenue of states including Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh, the Coal Ministry said in a statement.
"During 2014-2023, total revenue from royalty, DMF & NMET of all coal-producing states through coal mining sector is Rs 1,52,696 crore," the ministry said.
The compounded annual growth rate (CAGR) of the revenue from coal mining during 2014-2023 was 13.80 per cent, it said. Coal mining sector has proved to be a big booster for economic growth of the states that produce fossil fuel.
State governments are entitled to receive 14 per cent of royalty on the sale price of coal and 30 per cent of the royalty as contribution towards the proposed district mineral foundations (DMFs)-- which is meant to support project-affected people---and 2 per cent of NMET from dry-fuel produced by the coal companies and also the private sector.
In 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, road and several other economic benefits.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 17.90 ( -3.35)
- 166585989
- Alstone Textiles
- 0.75 (+ 8.70)
- 47681821
- GTL Infrastructure
- 3.27 (+ 4.81)
- 44040612
- Visagar Financial
- 0.91 (+ 12.35)
- 29755394
- YES Bank Ltd.
- 23.70 (+ 0.77)
- 22163699
MORE NEWS
![Indian Economy...](https://im.rediff.com/80-80/money/2020/nov/22economy.jpg)
Indian Economy Growth: Exports, Manufacturing &...
Mumbai, June 30 (PTI) Healthy increase in the country's exports, improvement in the...
![India Launches...](https://im.rediff.com/80-80/news/2020/jul/imports-o.jpg)
India Launches Anti-Dumping Probe on Glass...
New Delhi, June 30 (PTI) India has initiated an anti-dumping probe into the import of...
![IBBI Launches...](https://im.rediff.com/80-80/money/2020/dec/16insolvency.jpg)
IBBI Launches Electronic Forms for Liquidation...
New Delhi, Jun 30 (PTI) To ease the compliance burden for insolvency professionals, and...