Coal India's Contribution to Govt Exchequer Drops by 0.6% in H1 FY25
15 Oct 2024
2 Min Read
CW Team
Coal India Ltd (CIL), the state-owned coal giant, reported a slight decrease of 0.6% in its contributions to the government exchequer for the first half of the current fiscal year. According to provisional data from the coal ministry, CIL paid Rs 289.3 bn in levies during the April-September period of FY25, down from Rs 291.22 bn during the same period last year.
CIL, which produces over 80% of India’s domestic coal, saw its total payments to the exchequer for September drop significantly by 11.1%, from Rs 48.79 bn in FY24 to Rs 43.35 bn in FY25. These payments are derived from various levies, including royalties, District Mineral Foundation (DMF) contributions, and payments to the National Mineral Exploration Trust (NMET).
Major Beneficiaries: Coal-Producing States
Among the coal-producing states, Jharkhand emerged as the largest beneficiary of CIL’s contributions, receiving Rs 64.52 billion in the first half of FY25. Odisha followed closely with Rs 63.83 billion, while Chhattisgarh, Madhya Pradesh, and Maharashtra received Rs 54.32 billion, Rs 51.77 billion, and Rs 27.82 billion, respectively.
Over the past nine years, coal-producing states have earned a total of Rs 1.52 lakh crore in revenues from levies such as royalties, DMF, and NMET contributions, emphasizing the sector’s vital role in boosting state-level economic growth.
Coal Production on the Rise
Despite the drop in contributions, Coal India recorded a 2.5% increase in coal production during the first half of FY25, producing 341.5 million tonnes (MT) compared to 332.9 MT in the same period of the previous fiscal year. CIL’s total coal production for FY24 reached 773.6 MT, a 10% year-on-year increase, though it fell slightly short of the target of 780 MT.
For the ongoing fiscal year (FY25), Coal India has set an ambitious production target of 838 MT, continuing its focus on meeting India's rising energy demands.
Economic Impact of the Coal Sector
The coal mining sector remains a critical driver of economic growth in coal-producing states, contributing significantly to their financial stability. With levies such as royalties, DMF, and NMET in place, these states are better positioned to fund development projects and infrastructure improvements.
While Coal India's contribution to the exchequer has seen a slight dip, its consistent production growth signals the continued importance of coal in India's energy landscape. The company’s efforts to meet its production targets, coupled with its role in state-level economic development, highlight its influence on both the national and state economies.
Coal India Ltd (CIL), the state-owned coal giant, reported a slight decrease of 0.6% in its contributions to the government exchequer for the first half of the current fiscal year. According to provisional data from the coal ministry, CIL paid Rs 289.3 bn in levies during the April-September period of FY25, down from Rs 291.22 bn during the same period last year.
CIL, which produces over 80% of India’s domestic coal, saw its total payments to the exchequer for September drop significantly by 11.1%, from Rs 48.79 bn in FY24 to Rs 43.35 bn in FY25. These payments are derived from various levies, including royalties, District Mineral Foundation (DMF) contributions, and payments to the National Mineral Exploration Trust (NMET).
Major Beneficiaries: Coal-Producing States
Among the coal-producing states, Jharkhand emerged as the largest beneficiary of CIL’s contributions, receiving Rs 64.52 billion in the first half of FY25. Odisha followed closely with Rs 63.83 billion, while Chhattisgarh, Madhya Pradesh, and Maharashtra received Rs 54.32 billion, Rs 51.77 billion, and Rs 27.82 billion, respectively.
Over the past nine years, coal-producing states have earned a total of Rs 1.52 lakh crore in revenues from levies such as royalties, DMF, and NMET contributions, emphasizing the sector’s vital role in boosting state-level economic growth.
Coal Production on the Rise
Despite the drop in contributions, Coal India recorded a 2.5% increase in coal production during the first half of FY25, producing 341.5 million tonnes (MT) compared to 332.9 MT in the same period of the previous fiscal year. CIL’s total coal production for FY24 reached 773.6 MT, a 10% year-on-year increase, though it fell slightly short of the target of 780 MT.
For the ongoing fiscal year (FY25), Coal India has set an ambitious production target of 838 MT, continuing its focus on meeting India's rising energy demands.
Economic Impact of the Coal Sector
The coal mining sector remains a critical driver of economic growth in coal-producing states, contributing significantly to their financial stability. With levies such as royalties, DMF, and NMET in place, these states are better positioned to fund development projects and infrastructure improvements.
While Coal India's contribution to the exchequer has seen a slight dip, its consistent production growth signals the continued importance of coal in India's energy landscape. The company’s efforts to meet its production targets, coupled with its role in state-level economic development, highlight its influence on both the national and state economies.
Next Story
Kolkata’s luxury housing market sees price growth amid mixed trends
A new study by Nklusive reveals that Kolkata’s luxury residential market (Rs 5�10 crore) recorded a 33 per cent year-on-year rise in supply and a 52 per cent increase in sales in calendar year 2024 (CY24). South Kolkata led with 78 per cent of the segment’s supply. The average price rose by 6 per cent—from Rs 17,519 to Rs 18,600 per sq ft—while unsold inventory grew by 15 per cent. Monthly absorption improved from 2 to 3 units.In contrast, the ultra-luxury segment (Rs 10 crore and above) experienced a 17 per cent decline in supply and a 30 per cent fall in sales. Central Kolkata acco..
Next Story
New Expressway to Cut Pune-Bengaluru Travel Time by Half
The upcoming Pune-Bengaluru Expressway is expected to significantly improve connectivity and economic opportunities across Maharashtra and Karnataka. This 700-kilometre greenfield, access-controlled highway will cut the travel time between Pune and Bengaluru from 15 hours to just 7 hours, facilitating easier movement for both commuters and businesses. Starting from Bommanal in Karnataka’s Athani Taluk, the expressway will traverse important districts such as Belagavi, Bagalkot, and Jamakhandi. It will then enter Maharashtra at Kanjle, connect with the proposed Pune Ring Road, and pass throug..
Next Story
Nagpur’s Koradi Naka to Get Y-Shaped Flyover for Safer, Smoother Traffic
To alleviate traffic congestion and enhance safety at Koradi Naka in Nagpur, a Y-shaped flyover is currently being constructed on National Highway 47. Demolition work has already commenced, with the main construction scheduled to start on June 20, 2025.The project, costing Rs 430.37 billion, involves building a 1,090-meter-long flyover that will connect Farsa, the Mahadula Railway Overbridge (ROB), and Bokhara Road, and will also feature an underpass. The existing structure will be repurposed into a service road to facilitate local traffic.Koradi Naka has been identified as a significant "blac..