Coal news and updates

Govt eyes Rs 1.47 lakh crore from 92 coal blocks

Government is targeting a revenue of Rs 1.47 lakh crore from the allotment and auction of 92 coal blocks out of those being given out in the first phase to private as well as public sector entities.

The 92 coal blocks to be both alloted and auctioned have geological reserves of 18,446 million tonnes, according to an official source.

Of the 92 coal blocks, 57 blocks are for the power sector and 35 mines are for non-power sector and captive power plants, he said. In the first phase a total of 101 mines are being allocated, including 65 through the auction route.

The blocks for the power sector have geological reserves of 15,305 million tonnes and the revenue from these blocks, at a base price of Rs 100 per tonne, is likely to come to around Rs 1.53 lakh crore, said the source.

If we add revenue from both power and non-power sector the total revenues likely to be earned comes to around Rs 2.45 lakh crore," he said further.

"If extractable reserves are taken as 60 per cent of the geological reserves, the total revenue would be around Rs 1,47,448 crore," he said.

The government had last week increased the number of coal mines to be auctioned or allotted in the first tranche to 101, from 92.

Of the 101 blocks to be alloted and auctioned in the first lot, 63 mines would be given to the power sector, while the rest would be for sectors like steel and cement.

The government had earlier finalized rules for auction or allotment of 204 coal mines that were de-allocated by the Supreme Court.

In September, the apex court had termed the allocation of 204 mines since 1993 as "arbitrary and illegal".

Source: PTI