Jharkhand has emerged as the top earner from coal among Indian states, cornering over 25.4% of Coal India’s total revenue in the first five months of FY 2025-26. According to official data, the state earned Rs. 6,450.94 crore till August, including Rs. 1,685.34 crores in royalty and Rs. 493.48 crore in District Mineral Foundation Trust (DMFT) contribution.
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Officials said the sharp rise in Jharkhand’s coal revenue is driven by the State Government’s decision to levy royalty at market rates. This change pushed Jharkhand far ahead of Odisha (20.64%) and Chhattisgarh (18.20%) in coal revenue share. Odisha, despite higher production, collected Rs. 5,240.76 crores in total revenue, while Chhattisgarh earned Rs. 4,621.99 crores.
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Coking Coal Price and Demand Impact
BCCL’s coal continues to be priced higher due to the dominance of coking coal in its output. With thermal power sector demand showing signs of softening, companies like BCCL, CCL and ECL are under pressure to balance production, inventory, and pricing. Experts warned that sustained higher prices could impact dispatches to cost-sensitive sectors such as power and MSME-based manufacturing.
Industry Concern Over Rising Cost
Coal consumers have expressed concern that higher royalty collection, while increasing State income, could hurt competitiveness for end-users if price escalation continues. Sector insiders suggest the Centre and State Governments may need to explore a balanced approach to ensure affordable fuel for industry without compromising revenue growth.
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