File Photo
TFP Bureau, New Delhi, March 1, 2024: The coal mining sector emerges as a powerhouse driving economic growth in coal-producing states across the country. According to recent data released by the Ministry of Coal, the sector has witnessed a compounded annual growth rate (CAGR) of 13.80% in revenue from 2014 to 2023.
Under various revenue-sharing mechanisms, state governments receive a significant portion of the proceeds generated by coal mining activities. This includes a 14% royalty on the sale price of coal, 30% of royalty under the District Mineral Foundation (DMF), 2% of National Mineral Exploration Trust (NMET), and revenue shares from auctioned captive/commercial mines.
The total revenue accrued from royalty, DMF, and NMET during the aforementioned period amounts to a staggering Rs. 152,696 crores. Notably, states like Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, West Bengal, and Telangana have been major beneficiaries, witnessing substantial contributions to their revenue streams.
State-wise Revenue Breakdown from 2014-2023:
Chhattisgarh: Rs. 16,634.89 crores
Jharkhand: Rs. 23,779.90 crores
Odisha: Rs. 16,195.70 crores
Madhya Pradesh: Rs. 15,829.88 crores
Maharashtra: Rs. 10,770.67 crores
Telangana: Rs. 12,046.45 crores
West Bengal: Rs. 109.66 crores
Assam: Rs. 134.68 crores
Uttar Pradesh: Rs. 3,280.64 crores
Investment in Infrastructure:
The surge in coal mining revenue has facilitated increased investment in infrastructure development, including railways and roads, leading to socio-economic progress in coal-producing regions. The Ministry of Railways and Ministry of Road Transport and Highways have significantly allocated funds for improving evacuation infrastructure in these areas.
Under the PM GATI SHAKTI national master plan, the Ministry of Coal has devised the National Coal Logistics plan to enhance coal evacuation infrastructure, with the Ministry of Railways planning 37 new railway projects to meet future demands.
Moreover, Coal India Limited has invested over Rs. 24,000 crores in mechanized coal handling facilities, ensuring efficient First Mile Connectivity (FMC) from mine pitheads to railway loading points.
Joint Ventures for Railway Connectivity:
To bolster First Mile Railway connectivity, the Ministry of Coal has established three Joint Venture companies in Chhattisgarh, Odisha, and Jharkhand, in collaboration with IRCON and respective state governments. These ventures aim to undertake five railway projects with an investment of Rs. 11,655 crores, with two projects already commissioned and three in various stages of implementation.
