Govt approves allocation of 5 Coal blocks, Vedanta bags Jamkhani Coal Block of Odisha

By admin On Dec 5, 2019

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.

S. No	Name of Coal Mine	State	Extractable Reserves (Mt)	Grade	PRC (Mtpa)	Successful Bidder
1	Bikram	Madhya Pradesh	9.44	G-8	0.36	Birla Corporation Limited
2	Brahampuri	Madhya Pradesh	12.343	G-6	0.36	Birla Corporation Limited
3	Bhaskarpara	Chhattisgarh	24.06	G-7	1.00	Prakash Industries Limited
4	Jagannathpur B	West Bengal	50.02	G-10	0.80	Powerplus Traders Private Limited
5	Jamkhani	Odisha	114.98	G-11	2.60	Vedanta Limited

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.

S. No	Name of Coal Mine	State	PRC (Mtpa)	Final Price (Rs./tonne)	Revenue for 30 years* (Rs Crore)
1	Bikram	Madhya Pradesh	0.36	154	166.32
2	Brahampuri	Madhya Pradesh	0.36	156	168.48
3	Bhaskarpara	Chhattisgarh	1.00	1100	3,300.00
4	Jagannathpur B	West Bengal	0.80	185	444.00
5	Jamkhani	Odisha	2.60	1674	13,057.20