BENGALURU | March 30, 2015: India has hit a gold mine with the recently concluded auction of 29 coal mines in two phases. The public exchequer continues to swell on revenue from coal block auctions. The total proceeds from the coal mines auctions have crossed Rs 1.93 lakh crore; surpassing CAG's estimate of Rs.1.86 lakh crore losses on account of allocation of 206 captive coal blocks without auction since 1993.
It is estimated that an additional tariff benefit of around Rs 69,300 crore will accrue to the power consumers through the reverse auction of coal blocks. Moreover greater revenue flows to states from the auctions dovetails with the government's plans to develop the coal-rich eastern region. It is estimated that Rs 3.35 lakh crore of likely revenue to States through coal mines e-auctions & allotments. Jharkhand and Chhattisgarh are likely to receive a total of nearly Rs 1.10 lakh crore each, including royalty over 30 years from just the second phase of auction.
The sale of mines belonging to two categories, those already producing (19) and those ready-to-produce (14), which started on February 14 ended on March 9.
(Source: http://timesofindia.indiatimes.com/)