86 Coal Mines Auctioned Across Seven States Under 2020’s Commercial Auction Scheme
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TFP Bureau New Delhi, August 07, 2023: In a significant development for India’s coal industry, a total of 86 coal mines spanning seven states have been successfully auctioned under the Commercial Auction scheme initiated in June 2020 by the Hon’ble Prime Minister. The Ministry of Coal has been diligently conducting these auctions, marking a notable stride in the nation’s approach to coal mining.
As per the press release issued today by Press information bureau the Union Minister of Coal, Mines, and Parliamentary Affairs Shri Pralhad Joshi has furnished this information in a written response in the Rajya Sabha, underscoring the government’s commitment to transparency and effective resource management.
The latest statistics also reveal state-wise revenue distribution from these auctions, showcasing the remarkable financial gains from this endeavor.
Revenue Surpasses Projections
The Ministry of Coal’s consistent efforts in organizing commercial coal mine auctions have yielded impressive financial results. State-wise data demonstrates the revenue generated from upfront payments and monthly installments for mines auctioned for commercial purposes. In the fiscal years 2020-21, 2021-22, and 2022-23, the revenue streams per state are as follows:
– Chhattisgarh: Rs 28.786 crore, Rs 14.93 crore, Rs 481.542 crore
– Jharkhand: Rs 35.341 crore, Rs 2.255 crore, Rs 38.244 crore
– Madhya Pradesh: Rs 0 crore, Rs 225.371 crore, Rs 20.391 crore
– Maharashtra: Rs 0 crore, Rs 52.964 crore, Rs 8.993 crore
– Odisha: Rs 38.764 crore, Rs 125 crore, Rs 109.302 crore
– West Bengal: Rs 0 crore, Rs 0 crore, Rs 18.6 crore
– Assam: Rs 0 crore, Rs 0 crore, Rs 0.185 crore
This cumulative endeavor has led to a total revenue of Rs 102.891 crore in 2020-21, Rs 420.52 crore in 2021-22, and an impressive Rs 677.257 crore in 2022-23.
Operational Progress and Misconceptions
The Ministry of Coal’s strategic approach, coupled with unwavering support from State Governments, has paved the way for substantial progress in the coal mining sector. Of the total 99 coal mines auctioned for captive end uses and commercial mining since 2017, 55 have been granted mine operation permission. This demonstrates that not all mines are struggling to commence operations, contrary to certain perceptions.
Timely Operations and Agreements
The Coal Mines/Block Development and Production Agreement established between the Nominated Authority, the Ministry of Coal, and Successful Bidders lay out specific operational timelines. Schedule II coal mines have been granted a span of 9 months from the Vesting Order date for operationalization. Mines falling outside the purview of Schedule II receive 51 months for fully explored coal mines and 66 months for partially explored coal mines. Remarkably, several commercial mines have commenced operations even before their scheduled deadlines.
The ongoing strides in commercial coal mine auctions reflect India’s dedication to modernizing its coal sector, fostering revenue growth, and enhancing operational efficiency.
