The Jharkhand government has announced its decision to initiate legal proceedings to recover Rs 1.36 trillion in pending dues from the Centre. The amount pertains to coal mining royalties and other payments that the state claims are owed by central entities such as Coal India Ltd. Finance Minister Radhakrishna Kishore made the declaration while presenting the state budget of Rs 1.45 trillion in the assembly on Monday.

The government has maintained for years that the Centre owes this substantial amount to Jharkhand. During Question Hour, Excise Minister Yogendra Prasad informed the assembly that a joint committee comprising representatives from both the Centre and the state had been formed on March 1 to verify and assess the exact outstanding amount.

"A joint committee of the Centre and the state has been formed. The panel will evaluate the state's claim of Rs 1.36 trillion in coal dues and verify the outstanding amount under every category. We will recover the amount as per the committee's findings," Prasad said while responding to a query.

Kishore, who also holds the Parliamentary Affairs portfolio, revealed that he had met Union Coal Minister G. Kishan Reddy about 10-15 days ago to discuss the pending dues. He reiterated that the state government had already taken legal steps, issuing a notification in December 2024 to authorise the secretary of the Revenue, Registration and Land Reforms Department to begin legal proceedings for recovery.

The legal push follows the JMM-led coalition government's first cabinet meeting in November 2024, after its assembly poll victory, where it resolved to take the necessary steps to claim the dues. According to the official notification, the secretary of the Revenue, Registration, and Land Reforms Department was designated as the nodal officer to oversee the legal action.

"The secretary is authorised to initiate immediate legal action to recover Rs 1.36 trillion from the Centre. If any subsidiaries of Coal India delay payments related to washed coal royalties and common cause dues, necessary measures will be taken in consultation with the Advocate General," the notification stated.

Chief Minister Hemant Soren, who took office in November, has been vocal about the state's claim. Shortly after being sworn in, he emphasised the importance of the amount for Jharkhand's development and expressed his intention to take legal action if the Centre did not comply.

Earlier, Soren had urged the Centre to clear the dues, stating that the delay was causing "irreparable harm" to Jharkhand’s progress. On November 2, he posted on X (formerly Twitter), "The PM and the home minister are coming to Jharkhand. I once again request them with folded hands to clear the outstanding (coal dues) of Rs 1.36 trillion to Jharkhandis. This amount is crucial for Jharkhand."

He also called upon BJP leaders, particularly MPs from the state, to support Jharkhand in securing the dues. He maintained that the payments owed by central PSUs, including Coal India, were the state's "rightful due" and needed to be settled without further delay.

The Jharkhand government’s position was further reinforced by a recent ruling from a nine-judge Supreme Court bench, which upheld the state’s right to collect mining and royalty dues. The verdict adds legal weight to the state’s claims and could play a crucial role in its ongoing efforts to recover the pending amount.

The Jharkhand government remains firm in its pursuit of the Rs 1.36 trillion coal dues. While a joint Centre-state committee has been formed to verify the exact figures, the state has already begun legal proceedings to recover the amount. With strong political backing from Chief Minister Hemant Soren and a favourable Supreme Court ruling, Jharkhand is determined to ensure that the outstanding payments are realised, which could significantly impact its financial health and development initiatives.