+
Coal India's Contribution to Govt Exchequer Drops by 0.6% in H1 FY25
COAL & MINING

Coal India's Contribution to Govt Exchequer Drops by 0.6% in H1 FY25

Coal India Ltd (CIL), the state-owned coal giant, reported a slight decrease of 0.6% in its contributions to the government exchequer for the first half of the current fiscal year. According to provisional data from the coal ministry, CIL paid Rs 289.3 bn in levies during the April-September period of FY25, down from Rs 291.22 bn during the same period last year.

CIL, which produces over 80% of India’s domestic coal, saw its total payments to the exchequer for September drop significantly by 11.1%, from Rs 48.79 bn in FY24 to Rs 43.35 bn in FY25. These payments are derived from various levies, including royalties, District Mineral Foundation (DMF) contributions, and payments to the National Mineral Exploration Trust (NMET).

Major Beneficiaries: Coal-Producing States Among the coal-producing states, Jharkhand emerged as the largest beneficiary of CIL’s contributions, receiving Rs 64.52 billion in the first half of FY25. Odisha followed closely with Rs 63.83 billion, while Chhattisgarh, Madhya Pradesh, and Maharashtra received Rs 54.32 billion, Rs 51.77 billion, and Rs 27.82 billion, respectively.

Over the past nine years, coal-producing states have earned a total of Rs 1.52 lakh crore in revenues from levies such as royalties, DMF, and NMET contributions, emphasizing the sector’s vital role in boosting state-level economic growth.

Coal Production on the Rise Despite the drop in contributions, Coal India recorded a 2.5% increase in coal production during the first half of FY25, producing 341.5 million tonnes (MT) compared to 332.9 MT in the same period of the previous fiscal year. CIL’s total coal production for FY24 reached 773.6 MT, a 10% year-on-year increase, though it fell slightly short of the target of 780 MT.

For the ongoing fiscal year (FY25), Coal India has set an ambitious production target of 838 MT, continuing its focus on meeting India's rising energy demands.

Economic Impact of the Coal Sector The coal mining sector remains a critical driver of economic growth in coal-producing states, contributing significantly to their financial stability. With levies such as royalties, DMF, and NMET in place, these states are better positioned to fund development projects and infrastructure improvements.

While Coal India's contribution to the exchequer has seen a slight dip, its consistent production growth signals the continued importance of coal in India's energy landscape. The company’s efforts to meet its production targets, coupled with its role in state-level economic development, highlight its influence on both the national and state economies.

Coal India Ltd (CIL), the state-owned coal giant, reported a slight decrease of 0.6% in its contributions to the government exchequer for the first half of the current fiscal year. According to provisional data from the coal ministry, CIL paid Rs 289.3 bn in levies during the April-September period of FY25, down from Rs 291.22 bn during the same period last year. CIL, which produces over 80% of India’s domestic coal, saw its total payments to the exchequer for September drop significantly by 11.1%, from Rs 48.79 bn in FY24 to Rs 43.35 bn in FY25. These payments are derived from various levies, including royalties, District Mineral Foundation (DMF) contributions, and payments to the National Mineral Exploration Trust (NMET). Major Beneficiaries: Coal-Producing States Among the coal-producing states, Jharkhand emerged as the largest beneficiary of CIL’s contributions, receiving Rs 64.52 billion in the first half of FY25. Odisha followed closely with Rs 63.83 billion, while Chhattisgarh, Madhya Pradesh, and Maharashtra received Rs 54.32 billion, Rs 51.77 billion, and Rs 27.82 billion, respectively. Over the past nine years, coal-producing states have earned a total of Rs 1.52 lakh crore in revenues from levies such as royalties, DMF, and NMET contributions, emphasizing the sector’s vital role in boosting state-level economic growth. Coal Production on the Rise Despite the drop in contributions, Coal India recorded a 2.5% increase in coal production during the first half of FY25, producing 341.5 million tonnes (MT) compared to 332.9 MT in the same period of the previous fiscal year. CIL’s total coal production for FY24 reached 773.6 MT, a 10% year-on-year increase, though it fell slightly short of the target of 780 MT. For the ongoing fiscal year (FY25), Coal India has set an ambitious production target of 838 MT, continuing its focus on meeting India's rising energy demands. Economic Impact of the Coal Sector The coal mining sector remains a critical driver of economic growth in coal-producing states, contributing significantly to their financial stability. With levies such as royalties, DMF, and NMET in place, these states are better positioned to fund development projects and infrastructure improvements. While Coal India's contribution to the exchequer has seen a slight dip, its consistent production growth signals the continued importance of coal in India's energy landscape. The company’s efforts to meet its production targets, coupled with its role in state-level economic development, highlight its influence on both the national and state economies.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?