In FY 23-24, Coal India Limited Injected Rs 60.140 Crore into the Exchequer, Marking a 6.4% Increase

by IS_Indust
Coal India Limited

In the fiscal year 2023-24, Coal India, a state-owned major coal mining and producing company, contributed Rs 60,140.31 crore to the exchequer, marking a 6.4% increase from the previous fiscal year, according to the latest data from the coal ministry. This contribution to both central and state governments encompasses royalties, GST, cess on coal, and other levies. Notably, coal production serves as a significant revenue generator for both levels of government.

Royalty collections from Coal India Limited (CIL) alone reached Rs 16,066.69 crore in FY24, rising from Rs 15,401.30 crore in FY23. Furthermore, contributions to the District Mineral Fund (DMF) and the National Mineral Exploration Trust (NMET) under the Mines and Minerals (Development and Regulation) Act further augmented government finances in FY24. During this period, CIL disbursed Rs 4,817.55 crores to the central exchequer for the development of coal-producing districts, a 6.22% increase from FY23. Additionally, Rs 326.51 crore was allocated for NMET and Rs 4,605.87 crore as Goods and Service Tax.

Coal mining states, including Chhattisgarh, Jharkhand, and Odisha, were the primary beneficiaries of Coal India’s contributions. Jharkhand received the highest revenue of Rs 13,268.55 crore from CIL, followed by Odisha with Rs 12,836.20 crore, and Chhattisgarh with Rs 11,890.79 crore. Other states benefiting from these contributions include Madhya Pradesh, Maharashtra, Uttar Pradesh, West Bengal, and Assam.

Between 2014 and 2023, coal-producing states collectively earned Rs 1.52 trillion from royalties, DMF, and NMET, according to the latest government data. The compounded annual growth rate (CAGR) of revenue from coal mining during this period stood at 13.80%.

“The focus of the central government for enhancing coal production to meet the growing economy has directly helped the state governments in realisation of additional revenue, which in turn has infused capital expenditure in the coal producing regions thereby bringing in development, both in infrastructure and social sector,” the government had earlier said.

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