Faced with a demand from major coal producing States such as Jharkhand, Orissa, Chhattisgarh and Madhya Pradesh, the Centre is considering royalty on ad-valorem basis.

A study group, set up by the Ministry of Coal, will recommend revision of royalty rates on coal and lignite. Coal Ministry officials said the study group had already collected views/comments from the stakeholders concerned. The new royalty rates would be notified by the government after examining the group's recommendations.

On the issue of hurrying up green clearances, Coal Minister Sripakash Jaiswal has once again urged Environment and Forests Minister Jayanthi Natarajan to expedite the environmental clearances for various coal projects. The Coal Ministry had already asked the Environment Ministry to lift restrictions on coal expansion projects in seven coalfields. “They have also been requested not to recommend or reject proposals of coal blocks on the basis of go and no-go policy as it is not backed by any law or circular of the Ministry of Environment and Forests,'' a senior official said.

In 2010-11, 17 coal projects were affected due to imposition of moratorium in several industrial clusters. As on date, 50 projects are awaiting environment approvals.

More In: Business | Industry