In a setback to Orissa government demanding revision of coal royalty, the Center has refused to hike coal royalty at this point of time. However, Orissa Chief Minster, Naveen Patnaik, said that the state would approach the Union Finance Commission about the issue.

Clearing the government's stance, Union Minister of state for Coal, Mr. Sriprakash Jaiswal said: "There is no meaning of revision. Whatever coal royalty is being given is more than sufficient. We are worried about how production of coal could go up. We want to double the production. Accordingly, the royalty would also increase (pro rata)."

Meanwhile, the Orissa CM said that the state had to suffer loss due to delay in revision in coal royalty, despite recommendations from the Eleventh and Twelfth Finance Commissions; thus, the state must be paid compensation for the delay caused on the part of the Center. A state official said that royalty needs to be increased every three years as per Sarkaria Commission, formed to study center-state relations.

A congress delegation, through a memorandum, too demanded revision of royalty and said: "Though a time limit of three years has been determined for revision of royalty in consonance with recommendations of both Sarkaria and 11th Finance Commission, we witness perpetual irregularity causing immense loss to Orissa."