Latest News | Coal-producing States Earn Revenue Worth Rs 1.52 Lakh Cr in Last 9 Yrs: Centre

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.

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"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.

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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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)