Govt gets Rs 12.5k cr from 3 coal mines

Govt gets Rs 12.5k cr from 3 coal mines

Govt gets Rs 12.5k cr from 3 coal mines

The third day of coal e-auction ended on Saturday with Hindalco, Jindal Power and Indrajit Power each bagging one block.  

The government kitty’s has swelled by Rs 12,591 crore with the sale of three mines–Dumri in Jharkhand, Tara in Chhattisgarh and Nerad Malegaon in Maharashtra. 

Amid stiff competition from bidders, Hindalco Industries won Dumri mine in Jharkhand (Rs 2,127 per tonne), Jindal Power grabbed Tara block in Chhattisgarh (Rs 126 per tonne) and Indrajit Power clinched Nerad-Malegaon block in Maharashtra (Rs 660 per tonne). The Tara Block was for power sector while the two others were for unregulated sector like steel or cement. 

These three mines would contribute a cumulative Rs 12,591 crore to the state exchequer. 

With the three blocks, the government stands to garner over Rs 1.43 lakh core, including over Rs 1 lakh crore from the auction of 19 blocks in the first tranche. In the second trench of auctioning, which started on March 4, the government was able to rise Rs 43,000 lakh by selling eight mines. The amount of proceeds has been calculated based on extractable reserves and highest bid price.

Three more blocks will be put up for auction when the bidding starts on Sunday, said an official from the Ministry of Coal. 

In the second leg of the coal block auction, the government has put up 15 blocks for sale, which are under the “ready-for-production” category. 

The auctions follow the Supreme Court’s decision last year to cancel the allocation of 204 coal mines.