CCEA approves Revision of the existing Rates of Royalty on Coal and Lignite

The Cabinet Committee on Economic Affairs today approved the revision of Royalty rates on coal and lignite effecting amendment to the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 through a Gazette Notification in terms of Section 9 of the said Act. The weighted average royalty payable after revision excluding West Bengal as a percentage of weighted coal price (based on 2004-05 production level) works out to about 14%.

This will give the coal producing States a reasonable share of the income earned by production and selling of a non-renewable mineral resources like coal.

The earnings of coal producing States will increase as a result of revision in the coal and lignite royalty rates.

Source : Press Information Bureau

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