Coal news and updates

States set to get Rs.3 lakh crore through coal auction process

 A potential revenue stream of an estimated value of Rs.3 lakh crore is expected to open up for the coal-bearing States out of the e-auction process initiated earlier this year.

This money is expected to flow for thirty years and would comprise the auction value of the mines put on the block and the imposts flowing out of mining operations. Critically the envisioned revenue stream is linked with the mining activity.

While two tranches of e-auction of the cancelled coal blocks have already taken place, 10 more blocks have been identified for the third tranche. These auctions are set to be held from August 11 to 17, according to Coal Ministry sources.

Additionally, 43 mines have been allotted to state government companies.

In India, majority of coal deposits are to be found in the three eastern States of Jharkhand, Odisha, West Bengal, with West Bengal-Ranigunj coal belt containing some of the prized coals of the country. This apart substantial coal deposits are found in Chattisgarh, Maharashtra and Uttar Pradesh.

However, while many of the auctioned mines were operational and could start mining operations, the new allocates were facing problems over getting the statutory clearances such as forest and environmental clearances.

Most of these were in the realm of the State government and were being pursued by the Coal Ministry as the output of these mines were critical to the Centre’s plan to produce 1.5 billion tonnes of coal by 2020.

source: http://www.thehindu.com