The Centre is unlikely to consider the Odisha government's demand for revision of coal royalty as Union Coal and Mines Minister Prahlad Joshi on Friday said that it is linked to the power tariff.
"The Chief Minister has given a representation to me on coal royalty revision. I have briefed the Chief Minister that it is linked to power tariff. It's a larger policy decision since whatever decision is taken it will be applicable to the entire country," Joshi told reporters here.
The Minister, however, said that he will look into it.
The Union Minister met Chief Minister Naveen Patnaik here on Friday.
During the meeting, the Chief Minister reiterated the demand of the state government that the rates of royalty should be increased and the state should get a share from the cess collected on coal by the Central government.
With the mining leases of over 300 mines lapsing by March 31, 2020, Joshi said that the government has decided to ensure raw material through Public Sector Undertakings (PSUs) and some other arrangements.
He said the government will ensure that there is no shortage of minerals for the industries in the country.
The Minister informed that they discussed increasing the production at Mahanadi Coalfields Ltd (MCL), land issues and law and order problems at the coal site.
During the meeting, the state government requested to transfer a coal mine allocated to Odisha Mining Corporation (MOC) to Odisha Thermal Power Corporation Limited (OTPCL), said sources.