The Ministry of Coal has transferred Rs. 704 crores upfront amount received from the auction of coal mines to six coal-bearing States – Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and West Bengal. This financial transfer marks a substantial initiative to empower and support the developmental growth of these states.
The allotted amount of Rs 704 crores represents the first instalment of the upfront amount for 18 coal mines that were successfully auctioned under the 6th round and the 2nd attempt of the 5th round of commercial coal mine auctions.
State-wise details of the amount transferred are as below:
The reform of the Coal Mine Development and Production Agreement (CMDPA) paved the way for this significant development. As per the CMDPA, successful bidders have submitted the first instalment of the upfront amount to the Ministry of Coal. Notably, 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.
The next three Instalments are to be given directly to States by Bidders
This substantial financial infusion will be utilized by state governments to fuel development in their regions. It will enable strategic investments in infrastructure development, educational facilities, healthcare services and various welfare initiatives, uplifting communities and fostering overall growth.
Since the inception of commercial coal mining, the coal sector has been significantly contributing revenue to the State governments. Moreover, once the coal mines become operational, they will also contribute to the state’s prosperity through royalties and monthly premiums. The revenue generated from these mines could be channelled by the states to strengthen their financial capacity for essential welfare programs, uplift marginalized communities, and support other key development projects.
Disclaimer: This is an official press release by Pib.