BHUBANESWAR: In an aggressive bidding, Vedanta Limited offered the highest 21 per cent (pc) revenue share over the reserve price for Radhikapur (west) coal block in Talcher Coalfield area of Angul district.With a geographical reserve of 312 million tonnes (MT), it was the big mine for which companies like Adani Group’s Chendipada Collieries, Aditya Birla Group Company Essel Mining and Industries Limited (EMIL) and Jindal Steel and Power Limited (JSPL) participated.
The coal block will generate annual revenue of Rs 592.28 crore with a peak rated capacity of 6 MT per annum.Radhikapur was among the five mines put under the hammer on Monday by the Ministry of Coal in the first auction in the country for commercial mining under revenue sharing basis. Four other blocks located in Maharashtra, Madhya Pradesh and Jharkhand were also auctioned on day one. Under the revenue-sharing model, miners will have to share a percentage of revenue with states as against the earlier regime of rupees per tonne basis auction which was conducted irrespective of the market price of coal.
The Ministry of Coal went ahead with the e-auction despite the State government’s request to defer it by three months fearing that the auction would not generate desired revenue due to depressing coal prices in the market caused by Covid-19 pandemic.
In a letter to Union Coal Minister Pralhad Joshi, State Steel and Mines Minister Prafulla Kumar Mallik has stated that auction of coal block in the prevailing situation would adversely impact the State’s revenue collection from coal sector as coal prices in the market remain subdued as compared to 2019.