Jharkhand seeks higher royalty for coal, iron orePublished by MAC on 2007-04-13
Jharkhand seeks higher royalty for coal, iron ore
13th April 2007
Jharkhand has sought a 20 percent share in the centre's profits from coal and iron ore, saying delays in the revision of royalty on minerals mined from the state were causing it a loss of Rs.35 billion annually.
The demand was put forth at a two-day meeting of the Inter State Council of Mineral Resources (ISCMR), which began Thursday at the Indian Institute of Coal Management (IICM), Ranchi.
The meet is being attended by the chief secretaries of 14 states, which include Jharkhand, Chhattisgarh, Andhra Pradesh, Rajasthan, West Bengal, Tamil Nadu, Gujarat, Goa, Nagaland and Orissa.
Jharkhand Chief secretary A.K. Chug demanded a 20 percent royalty on profits made from coal and iron ore mined from the state.
Jharkhand officials believe if this demand is accepted by the central government, the state will earn an additional Rs.35 billion per annum. At present, Jharkhand gets Rs.11 billion as royalty.
Chhattisgarh representatives supported Jharkhand's view.
The representatives of different states are discussing royalties paid on different minerals by the central government. The delegates also talked about the low rates paid on iron ore despite a boom in the steel industry.