Government approves allocation of 5 blocks of coal to generate revenue of 17,136 rupees
New Delhi, December 5 () The Center on Thursday approved the allocation of five blocks of coal, including two to Birla Corporation and one to Vedanta, and said the mines will generate an income of Rs.1,136 million for the government.
For the first time, successful bidders will have the flexibility to sell 25 percent of coal production in the open market.
The coal ministry, after a long gap of four years, approved the allocation of five coal mines, the Coal Ministry said in a statement.
This was the result of the auction conducted by the Center last month.
The ministry had started the auction process of 27 coal mines for previously unregulated sectors.
Of the five mines, two were assigned to Birla Corporation Ltd and one to Vedanta Ltd, Prakash Industries Ltd and Powerplus Traders Pvt Ltd.
The income of Rs 17,136 crore will be generated over a period of 30 years.
... successful bidders will have the flexibility to sell 25 percent of coal produced in the open market. This will boost coal production in the country and reduce dependence on imported coal industries, the statement said. It is also anticipated that this step will generate huge revenues for state governments, where the mines are located, in the form of initial amount, royalties and other applicable taxes, he added. SID RVK