Govt. expects Rs 33200 crore from 87 auctioned coal mines
New Delhi: As the government launches the 7th round of the auction process for 106 coal blocks on March 29, 2023, the Coal Ministry stated today that within a span of fewer than three years, six tranches of auctions were successfully concluded and 87 coal mines were auctioned.
“These mines are estimated to generate revenue of around Rs. 33,200 Crores and to provide employment to about three lakhs persons,” the Ministry stated.
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With a vision of “Aatmanirbhar Bharat”, the first-ever tranche of Commercial Coal Mine Auctions was launched by Prime Minister Narendra Modi in June 2020. Mineral laws were amended to open up the coal sector, “to provide a level-playing field” to the public and private sector players and to permit the auction of coal mines “without any restriction” on end-use. Coal from these mines can be utilized towards own consumption, sale or any other purpose.
Key features of Commercial Coal Mine Auctions are as under:
- No restriction on the Sale and/or Utilization of Coal.
- Reduction in upfront amount and bid security amount.
- No stipulation of technical or financial eligibility criteria to enable wider participation.
- Permission to relinquish part of the Coal Mine in case of partially explored Coal Mines.
- Introduction of National Coal Index and National Lignite Index.
- Migration to % revenue sharing mechanism instead of fixed Rs. /Tonne-based auction.
- Incentives for promoting early coal production and adoption of clean coal technologies.
- 100% FDI under automatic route.
- Higher Revenue generation and Employment generation.
- Development of nearby areas around Coal Mines.
– global bihari bureau