The Odisha Government has demanded immediate transfer of Rs 560 crore to its account from the additional levy collected by the Government of India from an allottee of a coalmine.
The Government of India has already collected the additional levy with respect to coal extracted from the prior allottees of cancelled coal mines in different coal bearing States like Odisha, Chhattisgarh and West Bengal etc.
The Supreme Court had in September 2014 declared allocations of all coal blocks made through the Screening Committee and through Government dispensation route since 1993 as illegal and arbitrary. Of the 218 blocks, it had cancelled allocations of 204.
With the apex court order for cancellation as powers conferred by the Coal Mines (Special Provisions) Ordinance, 2014, the Central Government had authorised the Coal Controller Organisation to collect amount of additional levy from the prior allotees. Accordingly, the Coal Controller Organisation collected additional levy from the prior allotees.
However, though it is the legitimate due of the State Government, funds were not transferred to the State exchequer, said a senior officer in Department of Steel and Mines.
The Union Government has collected additional levy in regard to coal extracted from the prior allotees of 31 cancelled coal mines in various States.
The Coal Controller had collected Rs 295 per metric ton of coal from the prior allottees. And in Odisha, the Coal Controller had collected Rs 560 crore from Hindalco.
Hindalco paid the sum of money on account of Talabira-I, a coal block in Odisha, which is a legitimate due of the State.
Not only Odisha, but also Chhattisgarh and West Bengal have also demanded similar payments as the Ministry of Coal (MoC) has already collected additional levy from the mine owners in these States, whose leases were cancelled.
While all the State Governments are requesting the Union Government to transfer the legitimate amount, but the MoC has turned a deaf ear to the request.
So the Odisha Government has specially approached the Union Government to transfer Rs 560 crore at the earliest.
This is not the only case, while Government of India is collecting cess from the mine owners with the State not being given its share, rued the senior official. Apart from royalty, the Union Government is collecting Clean Environment Cess(CEC) from the coal mines. The CEC is now being collected at Rs 400 per ton, which was earlier Rs 200 per ton.
This is collected for environment protection and rehabilitation of the areas. Odisha is the worst sufferer due to coal mining. However, the cess is not shared by the MoC with the State Government, while the State is facing pollution problem due to coal mining.
The NITI Aayog has also been briefed about such a development as the policy making body is to take care of the concerns of the States. The issue was raised in GST Council by Odisha also and the Council said the cess is needed to be shared by all States.