Coal India's contribution to Govt exchequer rises 6.4% to Rs 60,140 crore in FY'24

New Delhi: State-owned Coal India Limited (CIL) contribution to the Government exchequer increased by 6.4 percent to Rs 60,140.31 crore in FY'24, over the financial year 2022-23.

Coal India, which accounts for over 80 percent of domestic coal output, paid Rs 56,524.11 crore to the Government exchequer in FY23, according to provisional figures of the coal ministry.

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Total levies paid to the government in March 2024 also went up by 14.8 percent to Rs 6,069.18 crore from Rs 5,282.59 crore paid in the corresponding month of FY23.

Of the total Rs 60,140.42 crore paid to the government exchequer in FY'24, maximum amount of Rs 13,268.55 crore was made to the state government of Jharkhand, followed by Rs 12,836.20 crore to the Odisha government, Rs 11,890.79 crore to Chhattisgarh, Rs 10,865.96 crore to Madhya Pradesh, and Rs 6,188.89 crore to Maharashtra among others.

The coal-producing states earned the revenue from royalty, District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) among others. The government had earlier said that the coal-producing states earned a revenue of Rs 1.52 lakh crore in the last nine years from royalty, DMF and NMET.

Coal mining sector has proved to be a big booster for the economic growth of the states that produce fossil fuel.

State governments are entitled to receive 14 percent of royalty on the sale price of coal and 30 percent of the royalty as contribution towards the proposed district mineral foundations (DMFs), which is meant to support project-affected people, and two percent 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. Coal India's production and off-take are pegged at 838 MT for FY'25.

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