The coal sector contributes over Rs 70,000 crore every year to the Centre and states, through GST, royalties and other levies, the government said on Monday.

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These funds play a significant role in the socio-economic development and infrastructure enhancement in those coal-bearing areas, the coal ministry said in a statement.

"The coal sector contributes over Rs 70,000 crore annually to the Centre and state governments through royalties, GST, and other levies," the statement said.

"Coal production generates substantial revenue for both Centre and state governments, with royalty collections reaching Rs 23,184.86 crore in the fiscal year 2022-23," the statement said.

Coal is the single-largest contributor to railway freight, with an average share of nearly 49 per cent of the total freight income amounting to Rs 82,275 crore in 2022-23 alone. This revenue contribution has surpassed 33 per cent of total railway earnings.