Coal ministry considering proposal to hike royalty rates on coal and lignite blocks

NEW DELHI: The government is considering a proposal to hike royalty rates on coal and lignite blocks. States governments of Jharkhand, Orissa, Chhattisgarh and Madhya Pradesh have asked for revision of rates, coal minister Sriprakash Jaiswal said in Lok Sabha on Wednesday.

The proposal is under consideration of a study group that has collected views of concerned stakeholders. The study group is analysing suggestions received in this regard.

“The new royalty rates would be notified by the government after examining recommendations of the said study group,” Jaiswal said.

In reply to another question, Jaiswal said coal ministry has requested environment ministry to expedite green clearances to coal mining projects.

The ministry has also asked environment ministry to lift restrictions on coal expansion projects in seven coalfields.

“They have also been requested not to recommend or reject proposals of coal blocks on the basis of go and no-go policy as it is not backed by any law or circular of ministry of environment and forests,” Jaiswal said.

He said during 2010-11, 17 coal projects were affected due to imposition of moratorium in several industrial clusters. As on date, 50 projects for are awaiting environment approvals at different stages.