Coal news and updates

States receive Rs 582 crore from coal block auction so far

Six state governments have received a total of Rs 582 crore from 31 coal blocks that have been auctioned so far with West Bengal's Sarisatolli block attracting the highest bid, according to data compiled by the coal ministry.

Jharkhand and West Bengal have collected around Rs 165 crore each, followed by Madhya Pradesh at Rs 158 crore.

West Bengal received around Rs 151 crore from the Sarisatolli block won by CESC. The second biggest sale so far is the Amelia North in Madhya  Pradesh that fetched Rs 131 crore from Jaiprakash Power Ventures.

Nevertheless, it has been estimated that the recently concluded auction of coal mines in two phases will lead to total earnings of Rs 1.93 lakh crore, surpassing CAG's estimate of Rs.1.86 lakh crore losses on account of allocation of 206 captive coal blocks without auction since 1993.

It is also estimated that an additional tariff benefit of around Rs 69,300 crore will accrue to the power consumers through the reverse auction of coal blocks. Moreover, greater revenue flows to states from the auctions dovetails with the government's plans to develop the coal-rich eastern region.

It is estimated that coal mines e-auctions and allotments will bring Rs 3.35 lakh crore of likely revenue to states.

Jharkhand and Chhattisgarh are likely to receive a total of nearly Rs 1.10 lakh crore each, including royalty over 30 years from just the second phase of auction.

source: http://economictimes.indiatimes.com