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Jharkhand finance minister calls for dialogue with central PSUs over pending coal supply dues
Replying to a question from Congress legislator Pradeep Yadav during the last day of the monsoon session of the assembly on Friday, finance minister Rameshwar Oraon said that the Jharkhand government, however, has the option of filing a certificate case against the coal mining firms to get the dues cleared.
Amidst a tussle with the central PSUs over outstanding dues, Jharkhand finance minister Rameshwar Oraon has said that taking coercive measures like blocking coal supply would be detrimental to the Union and the state government.
Replying to a question from Congress legislator Pradeep Yadav during the last day of the monsoon session of the assembly on Friday, the finance minister said that the state government, however, has the option of filing a certificate case against the coal mining firms to get the dues cleared.
“Resorting to coercive steps would not be advisable. Actions like economic blockade and stopping coal supply from the state would be detrimental to both the Centre and the state. It would also affect the industry, power situation, and consequently employment and the labour force both within and outside the state. The best way forward is a dialogue with central PSUs through bodies like Niti Ayog and East Zonal Council,” said Oraon.
In his written reply, the finance minister informed that the central public sector undertakings (PSUs) owe around ₹35,000 crore to the state government under different heads. Although the state has the option of filing a certificate case, they want the dues to be cleared mutually.
“Before 2019, the Centre would not even concede that they owe anything to the state. Later, as per the law, they conceded that surface land belongs to the state and only the sub-surface material belongs to the Centre. Hence, they have to pay royalties for the mined land as well as the usage of water resources. They later conceded to it but disputed the royalty rates. Now, things have been settled on those fronts. They have also started paying, and the coal ministry has paid around ₹2,500 crore until now,” said Oraon.
The payment of outstanding dues has been a bone of contention between the Centre and the Hemant Soren-led Jharkhand government. While the Hemant Soren government claims that the Centre owes around ₹1.32 lakh crore under different heads, the latter disputes the claim.
In October 2020, chief minister Soren had purportedly threatened a coal blockade after tensions between the state and the Narendra Modi government escalated over the financial conflict.
Soren had targeted the Bharatiya Janata Party (BJP)-led central government for its decision to deduct ₹1,417.50 crore from Jharkhand’s account with the Reserve Bank of India (RBI), claimed as electricity dues owed to the Damodar Valley Corporation (DVC), a central PSU.
