Chhattisgarh´s request for a revision in royalty rates on coal to 30 per cent from the existing 14 per cent ad-valorem, will push up the cost of electricity by 7 per cent or 10-12paisa/kWh, India Ratings today said in a report. The state government has constituted a study group to consider the revision in the royalty rates based on the request. ´Ind-Ra believes the royalty hike looks quite steep at 30 per cent, and if accepted, it will lead to coal attracting the highest ad-valorem duty compared to all other minerals,´ the report said.
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