RANCHI: Coal Minister Sriprakash Jaiswal today said state governments should not have any problems on coal-royalty based on ad valorem, as their coffers grow automatically with increase in coal price.
“Based on ad valorem, coal royalty increases on its own as and when rates of coal increase,” Jaiswal told reporters here.
Coal royalty based on ad valorem varies based on the value of the product.
Pitching for ad valorem in the background of coal-rich states like Jharkhand demanding percentage-wise royalty, Jaiswal claimed the states would get more royalty based on it in the next five years.
Expressing satisfaction over the production by subsidiaries of Coal India Limited (CIL) despite being affected by naxalism in some areas, the minister put the onus on the state governments saying law and order was a state subject and they should prevent illegal mining and pilferage of coal.
Talking about the performance of Central Coalfields Ltd ( CCL), a subsidiary of CIL, he asked subsidiaries to put all efforts to increase coal production.
“The requirement of coal is increasing (by the day) and the gap between demand and supply is opening up. So, it is necessary that all subsidiaries of CIL to make efforts in increasing coal production,” Jaiswal added.
Lauding CCL’s performance in this direction, the Minister expressed optimism that the company would become one of the best subsidiaries of CIL.