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Govt approves allocation of 5 coal blocks, to make `17,136 crore in revenue

Govt approves allocation of 5 coal blocks, to make `17,136 crore in revenue

New Delhi: After a month of auctioning six coal mines, the coal ministry finally approved the allocation of five for the unregulated sector.

However, the allocation for the sixth mine- Gare Palma 4/1 to Jindal Steel and Power Limited is still under consideration of the ministry, sources said.

On the last day of the auction, Vedanta bid the highest for Jamkhani coal mine of Odisha at Rs 1,674 per tonne, which has a capacity of 2.6 million tonnes per annum. Prakash Industries Limited bid highest for the Bhaskarpara coal block of Chhattisgarh that has a capacity of 1 million tonnes per annum.

Amongst other bidders, Birla Corporation's bid was the highest for two coal mines at Rs 154 per tonne for Bikram and Rs 156 per tonne for Bramhapuri mines in Madhya Pradesh. The ministry claimed that it had offered 27 coal blocks for auction for the non-regulated sectors like iron and steel, cement, and captive power plants, but received interests for only six coal blocks. "The ministry of coal, after a long gap of four years, has approved the allocation of five coal mines," the Coal Ministry said in a statement. The successful bidders will be allowed to sell 25 per cent of the coal produce in open market.

Excluding royalties, levies and applicable taxes, the revenue of Rs 17,136 crore will be generated over a period of 30 years, the statement said.

"This will boost coal production in the country and reduce the dependence of industries on imported coal," the statement said.

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