Biznextindia :A a long gap of 4 years, the Ministry of Coal has approved the allocation of five Coal Mines. While, Aditya Birla group has bagged Bikram and Brahmapuri Coal blocks of MadhyaPradesh, Vedanta has been allocated the Jamkhani Coal Block of Odisha. The other two blocks Bhaskarpara (Chattishgarh) and Jagannath B (West Bengal) has been allocated to Prakash Industries and Powerplus Traders (P) Ltd.
The Ministry had conducted e-auction for allocation of these Coal blocks in the first week of November. The Ministry had initiated the auction processes for 27 coal mines for Non-Regulated sectors previously.
One important feature of these allocations is that the successful bidders can sell 25% of the Coal produced from these blocks in the open market.
“The significant feature of the allocations is that for the first time, the successful bidders shall have the flexibility to sell 25% coal produced in the open market. This will boost the coal production in the country and reduce the dependence of industries on imported coal. It is also envisaged that this step will generate huge revenue for State Governments where the mines are located in the form of Upfront Amount, Royalties and other applicable taxes” said Coal India.