BHUBANESWAR, March 31: The Coal Ministry will soon revise the royalty on coal on the basis of gross calorie contents of this fuel, according to Union Minister of State for Coal Dillip Ray. Ray told newspersons here on Monday that nearly 27,000 coal samples had been collected in the country and tested independently.He said the gross calorie of coal was internationally accepted to determine the quality of the coal and hence it would be adopted for pricing and fixing the royalty.
The minister said the coal royalty rates were last revised by the government in 1994, adding that the provision for the revision of the royalty stipulated that it should not be revised in less than three years' time.
Ray denied the allegation that there had been attempt to downgrade the coal available in Orissa. He said though the coal companies generally decided the gradation of the coal but the coal controller also independently verified the gradition of the coal.
He said the decision to go for the gross calorie contents ofthe coal in identifying coal grade would certainly rule out the apprehension about the undervaluation of the coal quality.
Ray said a study group appointed by the Centre had already submitted its report on the revision of the coal royalty in September last year and the recommendation of the committee was under active consideration of the Coal Ministry.
The minister said a final decision on the revision of the coal royalty would be taken by his ministry within a couple of months.
Ray said of the seven coal divisions in the country, the Eastern Coalfield and the Bharat Coking Coal Limited had incurred a loss of Rs 341 crore and Rs 323 crore respectively during 1996-97. These two coal fields had been losing year after year.
He said most of the mines under these two divisions were underground and very old where the mechanisation was not possible. The minister, however, ruled out the denationalisation of these two mines. Ray informed during the 1996-97 financial year, the coal divisions had earned a profitof Rs 1,137 crore and expected more profit during the current financial year. He said while the Northen Coalfield had earned a profit of Rs 729 crore, the Western and Southern Coalfield had registered profit of Rs 525 crore and Rs 580 crore respectively. The Mahanadi Coalfield, had earned a profit of about Rs 326 crore.
Referring to the development of Mahanadi Coalfields, Ray said about 6,250 crore would be invested for the Mahanadi Coalfields during the 9th and 10th Plan. The projected demand for coal of the Mahanadi Coalfields by the end of the Tenth Plan would be around 95.93 million tonnes.
He said so far the Centre had sanctioned 16 projects with a total capacity of 41.58 million tonnes per year with a capital outlay of Rs 1688 crore.Ray said during the 9th Plan new projects such as expansion of Lakhanpur, Hingula, Kanhia, Kulda, Chhendipada, Lingraj, Belpahar and Basundhara would be taken up with an estimated cost of Rs 538 crore.
The minister said his ministry would focus on the development ofinfrastructure like railways, roads, power transmission, water supply, telecommunication and rehabilitation and resettlement of land oustees in the coal mining areas.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
