New Delhi. Public sector Coal India Limited’s (CIL) contribution to the government exchequer declined by 2.2 per cent to Rs 9,560.28 crore in April-May period of the current financial year. According to provisional data of the Coal Ministry, Coal India Limited, which contributes more than 80 per cent of domestic coal production, had paid Rs 9,777.64 crore to the government exchequer in the same period a year ago. The total charges paid to the government in May increased to Rs 4,763.20 crore from Rs 4,716.5 crore paid in the same month last year.
The amount paid to the central and state governments includes royalty, GST, cess on coal and other charges. Coal production generates substantial revenue for both the central and state governments. Out of the total amount paid to the government treasury in the first two months of the financial year 2023-24, the highest amount of Rs 2,122.39 crore was paid to the Jharkhand state government. This was 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.
State governments are entitled to receive 14 per cent of the royalty on the sale price of coal and 30 per cent of the royalty as contribution towards the proposed District Mineral Foundation (DMF) – which aims to support people affected by various projects. In case of private, commercial mines, the 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 associated infrastructure such as railways, roads and many other economic benefits.
Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.
