Bhubaneswar: The Centre has made it clear to the Odisha government that coal royalty is not be enhanced in the near future. Coal minister Piyush Goyal said this in response to a question raised by BJD MP Nagendra Pradhan.

Goyal on Wednesday informed the Lok Sabha: "There is no mandatory provision in the Mines and Mineral (Development and Regulation) Act, 1957, to revise the rates of royalty every three years."

In the standing committee of inter-state council in November 2017, Odisha chief minister Naveen Patnaik had underscored the need to increase the coal royalty. Naveen had said that the royalty on coal, which was due for revision in April, 2015, should be revised upwards at earliest.

He had also said that at least 60 per cent of the clean environment cess should be earmarked for the coal bearing states which have to bear the cost of environmental degeneration and rehabilitation. Naveen had also written at least three letters to Prime Minister Narendra Modi demanding revision of coal royalty. Goyal said: "The rates of royalty on coal and lignite were last revised on May 10, 2012. As regards revision of the rates of royalty on coal, a study group was constituted on July 21, 2014, for examining the revision of royalty on coal and lignite. The study group had submitted its recommendation on April 27, 2016. However, pursuant to the change in scenario due to implementation of GST and other factors, the matter was again referred to the study group. The final recommendation of the study group is awaited."

At present, Odisha is getting around Rs 1,100 crore to Rs 1,400 crore on coal royalty. If the royalty is revised, the state government is likely to get Rs 2,200 crore.

BJD spokesperson Samir Ranjan Dash said: "The Centre is constantly neglecting the cause of Odisha - be it in the revision of coal royalty or development of rail sector."