In a fervent appeal during the Zero Hour session of the Rajya Sabha on Monday, Biju Janata Dal (BJD) MP Sasmit Patra called upon the central government to address the long-pending revision of coal royalty for Odisha. Highlighting the state’s significant contribution to the country’s energy security, Patra emphasized the urgent need for a fair revision of the royalty rates that have remained unchanged for the past 12 years.
Odisha’s Coal Contribution and Economic Impact
“Odisha is among the top two states in the country that produce the maximum coal, which is crucial for the energy security of this nation,” Patra stated. Despite Odisha’s pivotal role in power generation and coal production, Patra lamented that the state’s rightful demand for a revision of coal royalty has been overlooked since May 10, 2012.
The BJD parliamentarian pointed out the financial repercussions of this delay, estimating that Odisha is losing approximately Rs 10,000 crore annually due to the unrevised royalty rates. Patra reminded the Parliament that former Chief Minister Naveen Patnaik had repeatedly raised this issue, seeking a fair revision to support the state’s economy.
Past Efforts and Unmet Demands
Patra detailed the historical context of the demands, noting that a study group was formed on July 21, 2014, to examine the matter of coal royalty. However, despite the study group’s findings, no revision was made. “The BJD government in Odisha has persistently pursued this issue,” he said, referencing a renewed demand at the Eastern Zonal Council meeting on February 28, 2020, to increase the royalty rate from 14% to 20%. Yet, these pleas have not been heeded.
Environmental and Social Considerations
In his address, Patra also highlighted the environmental toll of coal mining on Odisha, underscoring that while the state powers crores of households across India, it bears significant ecological and economic burdens. “Due to Odisha’s coal, crores of houses in India today get electricity, but it’s the same Odisha that loses Rs 10,000 crores towards coal royalty,” he noted. Patra stressed that this issue transcends political lines, framing it as a matter of governance and social justice for the people of Odisha who are directly affected.
A Call for Action
Patra’s appeal underscores a crucial governance issue that necessitates immediate attention from the central government. By addressing the coal royalty revision, the government can ensure that Odisha receives its due share of revenue, thereby supporting the state’s development and mitigating the environmental impacts of coal mining. As Patra aptly put it, “It is a governance issue and it needs to be looked into because it’s a people’s issue and those who are suffering in Odisha.”
The BJD MP’s address calls for a collaborative effort to resolve this long-standing issue, ensuring a fair and equitable distribution of resources that reflects Odisha’s substantial contribution to India’s energy landscape.
Prasanta Patnaik