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CAG Finds Coal Royalty Shortfall in Odisha

Coal News - Published on Fri, 09 Oct 2020

Image Source: Coal Royalty
PTI reported that the Comptroller and Auditor General of India has pulled up the Odisha government for non-inclusion of sizing charges in the Run-of-Mine price of coal during assessment, resulting in short levy of royalty of INR 112.26 crore. Stating that the mention was made in earlier audit reports regarding short-levy of royalty on sized coal in different mining circles, the CAG report said that scrutiny of relevant records revealed that similar irregularity persisted in three mining circles in the year 2017-18 as well. It was observed that one lessee despatched 10.15 crore tonnes of sized coal of less than 100 mm size relating to 15 coal mines during April 2016 to February 2017. The lessee paid royalty at the rate applicable to the price of ROM coal and not on the price of coal, including sizing charges.

Mines and Minerals (Development and Regulation) Act, 1957, provides that the holder of a mining lease shall pay royalty in respect of any mineral removed or consumed by him from a lease area at the specified rate, the CAG said in its report on revenue sector for the year ended March 2018. In terms of a 2012 notification of the Ministry of Coal, royalty on coal is leviable at the flat rate of 14 per cent ad-valorem on the price of coal as reflected in the invoice excluding taxes, levies and other charges. As per the notification of Coal India Limited of December 2013 on price of coal, if the top size of coal is limited to 100 millimetres through manual facilities or mechanical means, sizing charge at the rate of INR 79 per tonne shall be added to the price applicable for Run-of-Mine coal. Further, under Mining Concession Rules (MCR), 1960, in case processing of ROM minerals is carried out within the leased area, then, royalty shall be chargeable on the processed mineral removed from the leased area

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Posted By : Yogender Pancholi on Fri, 09 Oct 2020
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