Indian Coal Mining states cashed in Rs 7,930 Cr from Royalty in Apr-Dec 2020

coal

Indian Coal Mining states cashed in INR 7,930 Cr from Royalty in Apr-Dec 2020 (as per the reports by business today)

Coal Mines in India under Adani Group, Hindalco, Vedanta, CIL etc., ramp up their production to cater to the growing energy demand of the nation

The Indian coal mining states were provided with a total royalty amount of Rs 7,930.61 Cr during April-December 2020. The ten states which received the amount include Jharkhand, Chhattisgarh, Madhya Pradesh, Odisha, Telangana, Uttar Pradesh, Assam, Maharashtra, West Bengal and Meghalaya. 

These Indian states accommodate coal mines by Adani Group, Dilip Buildcon, Aurobindo Realty, Vedanta, Hindalco, CCL etc., working towards energy security of the nation.

Jharkhand has received Rs 2,102.01 Cr as royalty, followed by Chhattisgarh which has received Rs 1,575.73 Cr, Madhya Pradesh with Rs 1,489.44 Cr and Odisha with Rs 1,165.48 Cr, as stated by Pralhad Joshi, Coal Minister.

An amount of Rs 12,962 Cr was received by these states during 2019-20, Rs 14,764.11 Cr in 2018-19, Rs 13,126.03 Cr in 2017-18, Rs 11.227.14 in 2016-17 and Rs 10,736.7 Cr in 2015-16, as per the minister.

The production of minerals and other items or the generated profits or revenues from these products at a mine, are liable to receive a payment on a percentage basis as royalty.

The coal mining facilities of these and the other states remain burdened, catering to the spike in the electricity demand, while public sector companies like CIL are ramping up their supplies. To further ease the situation in India, private coal mines operated by the likes of Adani group goa, Hindalco, Vedanta, EMIL etc. will also scale up their production. The next 15 to 20 days are expected to remain burdensome with diminutive support from wind power and hydro power stations.

The country’s energy demand is hovering at its peak with around 190 GW, whilst the daily consumption on an average turns out to be 4,150 million units. Out of the nation’s 390 GW of installed generation base, 209 GW is backed by coal.

Coal consumption in India stands at 965 MT, out of which imports account for 235 MT. About 80 MT of the imports, is thermal coal which goes to power plants. The hiked prices of imported coal have put unforeseen pressure on the nation’s domestic coal.

Indian coal mines by private players like Adani Group, Vedanta, Hindalco as well as CIL and other government run facilities will have to mount up production to meet the growing energy demand. 

Read: Gautam Adani has Celebrated his Birthday with the most awaited Birthday Gift from Australia Mines.

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