Odisha has suffered a setback as the Centre refused to revise coal royalty, one of the main sources of revenue for the state. The rates were last revised on May 10, 2012.

The BJD said Odisha is losing ₹10,000 crore per annum because of the non-revision of the coal royalty.

Biju Janata Dal (BJD) president and former chief minister Naveen Patnaik said: “The demand of Odisha for revision of coal royalty, which has been pending for years with the central government has been rejected, because of which the state will lose thousands of crores of revenue every year.”

Naveen’s reaction came after the Union minister of coal and mines G. Kishan Reddy informed the Rajya Sabha on Monday that the coal royalty will not be revised based on the question of BJD Rajya Sabha member Sasmit Patra.

Reddy said: “The rates of royalty were last revised on 10.05.2012. For revision of the rates of royalty on coal & lignite, a study group was constituted on 21.07.2014 for the purpose of examining the issue of revision of present royalty rates on coal and lignite. The study group inferred from the comments of the stakeholders that the coal producing States had suggested to increase the rates of royalty from existing 14% to roughly 20%, whereas the coal consuming stakeholders suggested reducing the present rate of royalty from 14% to roughly 5-6%.” Reddy answered on the issue of coal royalty to a question of BJD Rajya Sabha member Sasmit Patra.

Patra told The Telegraph, “The BJD has been demanding for revision of coal royalty for Odisha. It's been 12 years since the coal royalty hasn't been revised. It is unfortunate that the Centre is now claiming that DMF funds are a suitable alternative to coal royalty...."