Coal mines allocated after 4 years; bidders can sell 25 percent coal produced in the open market
KI Singh/ royalpatiala.in/ Chandigarh
The Ministry of Coal, after a long gap of 4 years, has approved the allocation of five Coal Mines. This was the result of the electronic auction conducted by Ministry of Coal in first week of November 2019. The Ministry had initiated the auction processes for 27 coal mines for Non-Regulated sectors previously.
The details of the five Coal Mines allocated are:
|Name of Coal Mine||State||Extractable Reserves (Mt)||Grade||PRC
|1||Bikram||Madhya Pradesh||9.44||G-8||0.36||Birla Corporation Limited|
|2||Brahampuri||Madhya Pradesh||12.343||G-6||0.36||Birla Corporation Limited|
|3||Bhaskarpara||Chhattisgarh||24.06||G-7||1.00||Prakash Industries Limited|
|4||Jagannathpur B||West Bengal||50.02||G-10||0.80||Powerplus Traders Private Limited|
The significant feature of the allocations is that for the first time, the successful bidders shall have the flexibility to sell 25% coal produced in the open market. This will boost the coal production in the country and reduce the dependence of industries on imported coal. It is also envisaged that this step will generate huge revenue for State Governments where the mines are located in the form of Upfront Amount, Royalties and other applicable taxes.
|Name of Coal Mine||State||PRC
|Final Price (Rs./tonne)||Revenue for 30 years*
|4||Jagannathpur B||West Bengal||0.80||185||444.00|
*excluding royalties, levies, and applicable taxes