Coal news and updates

Estimated revenues from 31 mines is Rs 196,697 cr

India Coal Market Watch

December 8: The estimated revenues during the life of a mine is Rs 196,697 crore. As of now, 31 coal mines have been successfully auctioned under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the rules made thereunder.

The maximum quantum of revenue, of Rs 51,596.83 crore, would come from Chhattisgarh. The second position goes to Jharkhand at Rs 49,272.93 crore. The estimated revenues from Madhya Pradesh, Maharashtra, Odisha and West Bengal would be Rs 42,811.43 crore, Rs 5,920.62 crore, Rs 33,741.95 crore and Rs 13,354.22 respectively.

Piyush Goyal, Minister of State for Power, Coal & New and Renewable Energy, stated in Rajya Sabha that, "Revenue which would accrue to the coal-bearing state government concerned, comprises of upfront payment as prescribed in the tender document, auction proceeds and royalty on per ton of coal production”.

State-wise details of 31 coal mines auctioned so far and estimated revenues which would accrue to coal-bearing states during the life of mine/lease period is given below:

The minister further stated that in addition, an estimated amount of Rs 1,48,275 crore would accrue to coal-bearing states from the allotment of 42 coal mines to central and state PSUs. Further, the benefit to consumers in terms of reduction of electricity tariffs is likely to be about Rs 69,310.97 crore.

The central government has received an amount of Rs 1,398 crore from the auction and allotment of coal mines under the Coal Mines (Special Provisions) Act, 2015. With respect to the state of Odisha, the central government has received Rs 105 crore from the coal mines auctioned/allotted here and an amount of Rs 37 crore has already been transferred to the state government, the minister added.