Coal news and updates

Jharkhand tops the list in terms of number of auction of coal blocks

April 23: The state of Jharkhand appears to have benefitted the most in the auction of coal mines through competitive bidding as the maximum number of 20 mines out of the total 67 allocated so far are from the state.

The next in line was Chhattisgarh where 14 mines got allotted while West Bengal stood third as 11 mines got allotted in the first two phases of auction held in February and March.
According to Coal Minister Piyush Goyal, a total of 67 coal mines have been allocated through auction and allotment out of 204 coal blocks cancelled by the Supreme Court.

Goyal said in a written reply in parliament that no time limit has been fixed for completing the allocation process of all the 204 coal blocks.

He, however, said that the estimated amount of revenue likely to be generated from the Auction/Allotment of these 67 Coal Mines/Blocks is Rs 3,35,370 crore. In addition, the benefit to consumers in terms of reduction of electricity tariffs is likely to be about Rs. 69310.97 crores, the Minister added

ICMW had reported on April 20, quoting Secretary (Coal) Anil Swarup that the total revenue likely to go to the state from auction of 67 blocks would be Rs 335 lakh crore and another Rs 69,000 benefit to consumers of power.

Following table provides the detailed number mines that got allocated in the first two phases of auction:

 * One coal block namely, Ardhagram, where the successful bidder was declared, has been handed over to Designated Custodian in view of a Court Case.

The Minister further stated 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 29 coal mines auctioned so far along-with specified end-uses and estimated revenue which would accrue to coal bearing state during the life of mine/lease period as given below:

* Coal mine has been assigned to successful bidder as Designated Custodian in view of a court case.

In addition, an estimated amount of Rs. 1,41,854 Crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s.

The Minister further stated that out of these 29 coal mines, 16 are operational coal mines included in Schedule-II of the Act and 13 are non-operational included in Schedule-III of the Act.

Milestones for development and production of coal from the auctioned coal mines have been prescribed under the Coal Mines Development and Production Agreement signed with the Successful Bidder.

The Minister further stated that a few complaints were received regarding cartelization in bidding.

“It is not possible to conclusively establish the same until investigation are carried out by Competent Authority,” Goyal said.

He said the Government has not approved the recommendation of NA for declaration of successful bidder in case of 4 coal mines namely Gare Palma IV/2&3, Gare Palma IV/1 and Tara as final closing bid price was not found to be reflecting fair value, the Minister added.