The Jharkhand government will initiate legal proceedings against the Central Government to recover pending coal dues amounting to Rs 1.36 lakh crore, state Finance Minister Radhakrishna Kishore announced during his budget presentation in the Assembly on Monday.
Presenting a total state budget of Rs 1.45 lakh crore for the upcoming financial year, Kishore reiterated the government's determination to legally pursue the substantial dues, which primarily pertain to coal royalties and related payments from central public sector entities, including Coal India Ltd.
“The joint panel will meticulously assess Jharkhand's claim of Rs 1.36 lakh crore in coal-related dues, and we will proceed to recover the amount based on the committee's findings,” Prasad explained in response to a query raised by JD(U) legislator Saryu Roy during Question Hour.
In December 2024, the Jharkhand government officially started legal preparations by issuing a notification authorising the Secretary of Revenue, Registration, and Land Reforms Department to begin legal procedures to reclaim the dues.
According to the notification, the Secretary was appointed as the nodal officer, tasked explicitly with initiating immediate legal action to recover the pending coal dues. The directive also clarified that any obstacles encountered during payment recovery would be addressed in consultation with Jharkhand’s Advocate General.
Soren notably appealed directly to Prime Minister Narendra Modi and Home Minister Amit Shah, requesting them to resolve the pending dues urgently. On November 2, he took to social media platform X, posting, "I once again request them with folded hands to clear the outstanding coal dues of Rs 1.36 lakh crore to Jharkhandis. This amount is crucial for Jharkhand."
The Chief Minister also appealed to BJP representatives, especially MPs from Jharkhand, urging their cooperation in helping the state receive the rightful payments. He emphasised that delays in payment had been significantly hindering Jharkhand's developmental projects.
The ongoing dispute underscores the financial tensions between the Jharkhand state government and the Central government, with the upcoming committee report expected to offer clarity and direction toward resolution.
Presenting a total state budget of Rs 1.45 lakh crore for the upcoming financial year, Kishore reiterated the government's determination to legally pursue the substantial dues, which primarily pertain to coal royalties and related payments from central public sector entities, including Coal India Ltd.
Joint Committee Formed to Verify Dues
Earlier in the session, Jharkhand Excise Minister Yogendra Prasad informed the Assembly that a joint committee comprising representatives from both the Centre and the state was established on March 1 to thoroughly evaluate and verify the exact amount pending under various categories.“The joint panel will meticulously assess Jharkhand's claim of Rs 1.36 lakh crore in coal-related dues, and we will proceed to recover the amount based on the committee's findings,” Prasad explained in response to a query raised by JD(U) legislator Saryu Roy during Question Hour.
Ongoing Efforts to Resolve Coal Dues Issue
The Jharkhand government has long maintained that the Centre owes substantial amounts related to coal mined within the state by central entities, including subsidiaries of Coal India Ltd. This issue gained momentum following a nine-judge Supreme Court bench ruling affirming the state's right to collect mining royalties and associated dues.In December 2024, the Jharkhand government officially started legal preparations by issuing a notification authorising the Secretary of Revenue, Registration, and Land Reforms Department to begin legal procedures to reclaim the dues.
According to the notification, the Secretary was appointed as the nodal officer, tasked explicitly with initiating immediate legal action to recover the pending coal dues. The directive also clarified that any obstacles encountered during payment recovery would be addressed in consultation with Jharkhand’s Advocate General.
Chief Minister Hemant Soren Urges Centre to Clear Dues
Chief Minister Hemant Soren, since assuming office after the JMM-led coalition's victory in November 2024, has persistently urged the Centre to settle the outstanding dues promptly.Soren notably appealed directly to Prime Minister Narendra Modi and Home Minister Amit Shah, requesting them to resolve the pending dues urgently. On November 2, he took to social media platform X, posting, "I once again request them with folded hands to clear the outstanding coal dues of Rs 1.36 lakh crore to Jharkhandis. This amount is crucial for Jharkhand."
The Chief Minister also appealed to BJP representatives, especially MPs from Jharkhand, urging their cooperation in helping the state receive the rightful payments. He emphasised that delays in payment had been significantly hindering Jharkhand's developmental projects.
The ongoing dispute underscores the financial tensions between the Jharkhand state government and the Central government, with the upcoming committee report expected to offer clarity and direction toward resolution.