Royalty hike on coal, lignite hailed by Assocham

New Delhi, June 21 (UNI) Industry chamber Assocham complimented the Central Government for royalty hike on coal and lignite, describing it as a move in the right direction.

The body expressed confidence the move will bear minimum reflection on inflation.

''With royalty hike, electricity prices will go up which each consumer domestic or industrial will have to bear in proportion.

The state governments will gain out of it as this issue has been pending for redressal for very long,'' Assocham President Venugopal N Dhoot said.

Assocham had already advocated for royalty hike with the Finance Minister and other relevant ministries and is happy that its recommendation has been accepted at a meeting of CCEA, he added.

The centre has decided to raise the royalty on coal and lignite by 14 per cent, benefitting the states by about Rs 746 crore a year.

At present, coal and lignite producing states are getting a total royalty of about Rs 3,102 crore and this is estimated to go up to Rs 3,848 crore, depending upon production and grades.

UNI