'Jharkhand to get up to Rs 3 lakh cr in 30 yrs from coal sale'

The proposed auction of 204 coal blocks will fetch huge revenues to Exchequers of states, particularly Jharkhand which will get Rs 2.5-Rs 3 lakh crore in the next 30 years, a highly placed source said today.
"In Jharkhand, apart from its normal routine royalty which itself is Rs 1.5 lakh crore, out of this auction (coal mines) it will get a minimum of Rs 2.5-3 lakh crore in next 30 years," the source said.
The government is in the process of finalising rules of auctioning 204 coal blocks which were cancelled by the Supreme Court in September terming the allocations of these mines since 1993 as "fatally flawed".

Both public and private entities would be given blocks through the auction process, the source said.
On Coal India (CIL), he said that the government has chalked out a strategy for the company to ramp up its production to one billion tonnes over the next five years.
The world's largest coal miner CIL, which accounts for over 80 per cent of the domestic production, had produced 462 million tonnes in the last fiscal, missing its target of 482 MT.

The source said the coal PSU had more than 200 mines, where work could not be started and if 50 or 100 such mines commenced production, an additional 200 MT would be contributed to the production.

There is potential of about 200 million tonnes additional production from existing mines.
"Many domestic and international consultancy firms have given presentations. So, it came forward that if we come up with good technology, mine development process and introduce safety standards in these existing mines, then there is potential of 150-200 million tonnes."
Sources said the government's focus was on evacuation of coal and work was on war footing on three critical rail infrastructure projects to lift coal.
"The railway link in Chhattisgarh is on track and the government will expedite Jharkhand project after the elections are over there," he said.

With lack of transport infrastructure hampering coal production, the government had earlier said it had brought on track one of the three critical rail links in Chhattisgarh and efforts were on to fast track other two in Jharkhand and Odisha.
Coal and Power Minister Piyush Goyal had earlier said, "There is potential to add another 200 or 300 million tonnes if three critical rail links are expedited in the states of Chhattisgarh, Jharkhand and Odisha. Timelines have been drawn up and the Chhattisgarh rail link has come on track.