BHUBANESWAR: The Ministry of Coal has transferred an upfront amount of Rs 199.81 crore received from the auction of coal blocks under the sixth round and second attempt of the fifth round of commercial coal mine auctions to the state government.
The ministry transferred Rs 704 crore to six coal-bearing states including Odisha after the successful auction of 18 coal blocks. While Chhattisgarh received Rs 147.18 crore, Jharkhand Rs 130.99 crore, Madhya Pradesh Rs 188.85 crore, Maharashtra and West Bengal received Rs 18.75 crore each.
The allotted amount of Rs 704 crore represents the first instalment of the upfront amount for 18 coal mines that were successfully auctioned under sixth round and second attempt of fifth round of commercial coal mine auctions.
As per the Coal Mine Development and Production Agreement (CMDPA), successful bidders have submitted the first instalment of the upfront amount to the Ministry of Coal. The remaining three instalments will be directly submitted by the bidders to the respective state governments, further amplifying their contribution to the development of these states, said a statement press from the Ministry of Coal.
Since the inception of commercial coal mining, the coal sector has been significantly contributing revenue to the State governments. Once the coal mines become operational, they will also contribute to the state’s prosperity through royalties and monthly premiums. Of the 86 coal blocks auctioned under the sixth round, 18 coal mines are from Odisha.