Centre owes Rs. 1.36 lakh crore to Jharkhand: Hemant Soren

Mr Soren has written to Coal and Mines Minister Pralhad Joshi to remind him about the payment and requested him to release the same at the earliest.

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Mar 26, 2022 06:38
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Centre owes Rs. 1.36 lakh crore to Jharkhand: Hemant Soren

Ranchi: Jharkhand Chief Minister Hemant Soren has dashed off a letter to the Union government to release Rs. 1.36 lakh crore due for mining by government firms.

Mr Soren has written to Coal and Mines Minister Pralhad Joshi to remind him about the payment and requested him to release the same at the earliest.

"In spite of repeated consultations held with the Coal Ministry and NITI Aayog regarding non-payment of long-standing legitimate dues of Rs. 1.36 lakh crores related to mining done by central PSUs (public sector undertakings), the government of India has paid no heed so far. I have written to Pralhad Joshi ji in this regard," Mr. Soren tweeted, along with the letter.

A large portion of coal mining in mineral-rich Jharkhand is done by a subsidiary of Coal India Ltd, or CIL. "These coal companies are not paying legitimate demand of revenue to the state, resulting in huge dues to the state from these companies," the Chief Minister said in the letter.

Mr. Soren requested the Mineral Concession Rules, 1960, which says royalty is chargeable for mining in a leased area, among other similar conditions.

"At present, the CIL subsidiary coal companies in Jharkhand are paying royalty on the basis of run-of-mine coal rather than processed coal being dispatched...The courts ruled in favour of Rule 64B and Rule 64C," the Chief Minister said,

Mr Soren said the socio-economic development of Jharkhand mainly depends on the revenue from these minerals and referring to sections of the law on mandatory royalty payment towards state government.

"In spite of provision in the law and judicial pronouncements made therein, coal companies are not paying royalty on washed coal resulting in huge pending of the demand. The position of the law and judicial pronouncement is being well accepted by the Ministry of Coal in its reply to NITI Aayog, but denying payment on account of that will increase the cost of coal in the domestic market," Mr Soren said in the letter.