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States receive Rs 102.7 cr as upfront payment for coal mines

Friday, 08 May 2020
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A total of Rs 102.7 crore has been transferred to the coal-bearing states including Odisha and Chhattisgarh on account of upfront payment for blocks that were auctioned and allotted in 2019.

The amount towards upfront payment to the coal-bearing states, Chhattisgarh, West Bengal, Madhya Pradesh and Odisha, was sanctioned. Of Rs 102.7 crore, the maximum amount of Rs 71.4 crore was transferred to Odisha, followed by Rs 21.4 crore to Chhattisgarh, Rs 5.4 crore to West Bengal and Rs 4.4 crore to Madhya Pradesh.

The Ministry of Coal had in January 2020 received a sum of Rs 41.2 crore as first installment of upfront payment from Vedanta for Jamkhani coal block in Odisha, which the company had bagged in the auction held in 2019.

The Centre had also received in February Rs 51.6 crore from KPCL for two coal blocks in Odisha and Chhattisgarh. The ministry had also received Rs 4.4 crore from the Birla Corporation for two mines in Madhya Pradesh. The Centre had late in 2019 approved allocation of five coal blocks.

For the first time, the successful bidders will have the flexibility to sell 25 percent of the coal produced in open market.

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