The Centre and key mineral producing states are likely to incur a revenue loss of up to Rs 12,000 crore in FY21 due to lower coal and mineral consumption during the coronavirus lockdown, a report said on Friday.
“As per our estimates, the top five mineral producing states are likely to see an impact of around Rs 3,000-3,500 crore in all, due to decline in offtake of minerals (other than coal).
“Correspondingly, just from these 5 states (Odisha, Rajasthan, Chhattisgarh, Andhra Pradesh and Karnataka) the Central government is also expected to lose Rs 1,000-1,500 crore – as its share of taxes such as NMET, CGST and Corporate tax – due to fall in mineral sales (excluding coal) in these 5 states,” KPMG in India said in its thought paper titled ‘Impact of COVID-19 on the mining sector in India’.
