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 112.26 crore.
Mines and Minerals (Development and Regulation) Act, 1957, provides that the holder of a mining lease shall pay royalty in respect of any mineral removed or consumed by him from a lease area at the specified rate, the CAG said in its report on revenue sector for the year ended March 2018.
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, said the report tabled in the Odisha Assembly on Tuesday.
As per the notification of Coal India Limited 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