State-owned Coal India Ltd's contribution to the government's exchequer rose 2.06 percent to Rs 20,071.96 crore in the April-July period of the ongoing fiscal year. Coal India Ltd (CIL), which accounts for over 80 percent of domestic coal output, paid Rs 19,666.04 crore to the government exchequer in the year-ago period, according to provisional figures of the coal ministry. Total levies paid to the government in July went up to Rs 4,992.48 crore from Rs 4,789.42 crore paid a year earlier.

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The amount paid to the Centre and state governments includes royalties, GST, cess on coal, and other levies. Coal production generates substantial revenue for both central and state governments. Of the total amount paid to the government exchequer in the first four months of FY24, maximum amount of Rs 4,417.12 crore was made to the state government of Jharkhand, followed by Rs 4,319.67 crore to the Odisha government, Rs 3,950.41 crore to Chhattisgarh, Rs 3,526.27 crore to Madhya Pradesh, and Rs 2,086.35 crore to Maharashtra, among others.

State governments are entitled to receive 14 percent of the royalty on the sale price of coal and 30 percent of the royalty as a contribution towards the proposed district mineral foundations (DMFs) -- which are meant to support people affected by various projects -- and two percent of NMET from dry-fuel produced by the coal companies and also the private sector.

In the case of captive, commercial mines, states are also entitled to receive the revenue share offered by the auction holder in a transparent bidding process. Apart from this, state governments also benefit from increased employment, land compensation, increased investment in allied infrastructure like railways, and roads, and several other economic benefits. Coal India is aiming to produce 838 MT of coal in the ongoing financial year.