Odisha to demand Rs 560 crore levy collected from Talabira mines

The state government has decided to ask the Centre for transfer of additional levy collected from previous owners of Talabira 1 coal mines, estimated at over Rs 560 crore.

The decision was taken in a meeting convened last week based on a communication from Union Coal Ministry, which had asked the state governments to submit claims in respect of revenue, taxes, cess, additional levy and rates unpaid by previous allottees of coal blocks before 26 March.

"The claim of additional levy will be sent separately and not with the claims related to coal mines lease," said a government official with direct knowledge of the matter.

Union coal minister Piyush Goyal earlier this month had informed the Parliament that state governments, including Chhattisgarh has asked for transfer of additional levy collected from operational coal mines. Odisha Chief Minister Naveen Patnaik, during his recent meeting with Goyal, has raised the issue, sources said.

Additional levy is collected at Rs 295 a tonne for each tonne excavated by coal mines allocated since 1993 as per Supreme Court order on cancellation of coal blocks. The operators have already deposited the amount with the Coal Controller. The total amount of additional levy deposited so far in the government account is Rs 6,149.6 crore, out of which Hindalco industries, previous owner of Talabira 1, has deposited more than Rs 560 crore.

The Union government is yet to take any decision on state governments' demand to transfer additional levies collected from coal mines.

The coal ministry had allocated 32 blocks in Odisha for captive consumption of industries. Of this, seven had already been de-allocated by the ministry. The allocation of remaining 25 blocks were cancelled after the apex court ruling last year.