The major coal producing States had requested for increase of royalty @ 20% on ad-valorem basis. A study Group constituted by the Ministry of Coal for revision of royalty rates on coal and lignite had recommended for adoption of ad-valorem regime after consultation with the various stake holders including State Governments. The recommendations of the Study Group have been accepted by the Government and royalty rate on coal and lignite have been revised at the rate of 14% and 6% ad-valorem respectively with effect from 10.05.2012.
This information was given by the Minister of State in the Ministry of Coal, Shri Pratik Prakashbapu Patil in a written reply in Lok sabha today.