CAG pulls up Odisha government over Rs 1.12 billion royalty shortfall on coal

The Comptroller and Auditor General (CAG) of India has pulled up the Odisha government for non-inclusion of sizing charges in the run-of-mine price of coal during assessment, resulting in short levy of royalty of Rs 1.12 billion.

In terms of a 2012 notification of the Ministry of Coal, royalty on coal is leviable at the flat rate of 14 per cent ad-valorem on the price of coal as reflected in the invoice excluding taxes, levies and other charges. As per the notification of Coal India Limited (CIL) of December 2013 on price of coal, if the top size of coal is limited to 100 millimetres through manual facilities or mechanical means, sizing charge at the rate of Rs 79 per tonne shall be added to the price applicable for run-of-mine (ROM) coal.

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