Saturday, February 21, 2015

Coal secretary said ""poor states will benefit from coal auction"". Can you please comment whether Mines are central property or state property? The auctioned money will come to state or central? The coal cess which was increased recently for investing in research of Sustainable Power will be collected by states or centre?

        Money from coal allocation goes to central govt only. States which have these mines do get royalty from what is paid to center. Coal mining companies pay to center the royalty which is shared with state
         It’s about the value addition that all get! from the sale of raw coal till the power consumption. If they are sold at higher rate, that would lead to more tax too, to the states. Monetary resources (the sale of mines)- that money will come under Union's purse. But, a part of it goes to the state too, in form of many cesses and taxes. Like, Karnataka benefited from iron ore mining. there are so many of them. Transport, service tax, sales tax etc.

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