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Jharkhand to get Rs 18,889 cr from coal mining by CIL

Friday, 31 Jul 2020
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The government of Jharkhand is likely to get revenues of around Rs 18,889 crore from the 742 million tonne of coal expected to be mined out by Coal India (CIL) in the state over the next four years.

The coal companies, Central Coalfields (CCL), Bharat Coking Coal (BCCL) and Eastern Coalfields (ECL), are expected to mine out the 742 million tonne of coal.

The state earned almost Rs 4,000 crore every year during the last four years, that is around Rs 16,000 crore.

CIL pays about 30 percent of its total royalty to Jharkhand alone, while the share of production from the state is about 20 percent.

Jharkhand is the only state in the country to have three coal companies simultaneously excavating coal out of its mineral-rich soil.

Of the nine blocks in Jharkhand put up for sale for commercial mining, the eastern state is likely to earn more than Rs 3,200 crore in one year as revenue and almost 50,000 additional jobs will be generated for people of the state.

Additionally, Jharkhand's contribution to the District Mineral Foundation (DMF) will be around Rs 17 crore, which can be used for development of regions around coalfield areas.

So far the response for blocks put up for auction for commercial mining has been positive, five to 10 bidders have shown interest for each of the nine blocks.

Once commercial mining picks up, imports by independent thermal power plants and captive power plants are likely to be substituted, saving around Rs 30,000 crore in potential import bill every year.

Also, it will help in generating more than three lakh direct and indirect jobs.

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