The Cabinet Committee on Economic Affairs or CCEA has approved a proposal to charge royalty on coal and lignite on ad-valorem basis or based on the market value of the mineral, which will make the coal and lignite costlier, reports said.
Coal will now attract a royalty of 14 percent and lignite will be charged at six percent. As a result of the royalty revision, the coal-bearing states will earn additional revenue of around Rs.1,050 crore over the present earnings of Rs.5,950 crore.
Presently, the royalty for both minerals is calculated through a formula consisting of ad-valorem and a fixed component. The fixed component depends on the grade of coal, while the ad-valorem is calculated at basic pit-head price.
The proposed royalty revision is not to be extended to West Bengal, unless the State Government withdraws the cesses.
For states other than West Bengal that levy cesses or other taxes specific to coal-bearing lands, the revision of royalty allowed shall be adjusted for the local cesses or such taxes to limit the overall revenue to the ad-valorem royalty yield, a statement said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.