Coal news and updates

States get Rs 1,233 crore as upfront payment for coal mines

A total of Rs 1,233 crore has been transferred to the coal bearing states including Jharkhand and Odisha on account of upfront payment for coal blocks that were auctioned and alloted. "So far, a total of Rs 1,233.22 crore has been transferred to state governments of coal bearing states on account of Upfront Payment," an official said quoting the latest figures. Also, a sum of Rs 162.46 crore has been transferred to the state governments of coal bearing states viz.

Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha and West Bengal on account of monthly payment (up to October, 2015), the official added. The government had last year auctioned 31 coal mines in three tranches and also allotted 42 coal mines to Central or State Government Companies. It is estimated that Rs 3.44 lakh crore of likely revenue to states through coal mines auctions and allotments over 30 years from just the three rounds of auction. The fourth round of auction of 8 coal mines ( Schedule III) for non­regulated sector has also been announced. The next round of mines auction, which was scheduled for January, had to be canceled on account of poor response from bidders in sectors like steel as well as depressed commodity prices and adverse market conditions.

Source: EconomicTImes