Coal India's FY24 exchequer contribution rises 6.4%

Coal India Ltd, the state-owned coal mining giant, has increased its contribution to the government exchequer, hitting Rs 60,140.31 crore in the fiscal year 2023-24. This marks a rise of 6.4 per cent compared to the previous fiscal year.

In FY23, Coal India Ltd paid Rs 56,524.11 crore to the government exchequer, as per provisional figures from the coal ministry.

The total levies paid to the government in March 2024 also saw an increase, surging by 14.8 per cent to Rs 6,069.18 crore from Rs 5,282.59 crore in the corresponding month of FY23.

Of the total contribution made to the government exchequer in FY24, the highest amount of Rs 13,268.55 crore was disbursed to the state government of Jharkhand, followed by Rs 12,836.20 crore to Odisha, Rs 11,890.79 crore to Chhattisgarh, Rs 10,865.96 crore to Madhya Pradesh, and Rs 6,188.89 crore to Maharashtra, among others.

These coal-producing states earned revenue from various sources, including royalty, District Mineral Foundation (DMF), and National Mineral Exploration Trust (NMET), among others. The government previously announced that coal-producing states had garnered a total revenue of Rs 1.52 lakh crore over the past nine years from royalty, DMF, and NMET.

The coal mining sector has played a pivotal role in driving economic growth in states where fossil fuel is produced. State governments receive a share of royalty on coal sales, contribution towards district mineral foundations (DMFs), and NMET from coal companies and the private sector. Additionally, they benefit from increased employment opportunities, land compensation, and investments in allied infrastructure such as railways and roads.

Coal India's production and off-take targets for FY25 are set at 838 million metric tons (MT), further contributing to the nation's energy sector and economic growth.

(With PTI inputs)