Sale of 11 coal mines makes states richer by Rs 60,000 cr

States, including Chhattisgarh, Jharkhand and West Bengal, are set to get nearly Rs 60,000 crore from 11 coal blocks sold in the ongoing auction, a top official said today.
The total number of blocks sold so far is 12 with Essar Power MP Ltd bagging the Tokisud North mine in Jharkhand on the fifth day of the coal auction today. However, the revenue accruing on account of the 12th block sale could not be immediately obtained.
The government is auctioning the coal blocks after the Supreme Court cancelled allocation of 204 mines in September last year. It has put 19 mines on block in the first tranche.

GMR Chhattisgarh Energy, Reliance Cement, Sunflag Iron and Steel, CESC, Hindalco Industries, Jaiprakash Associates and BALCO are among the companies that bagged 11 coal mines in the previous four days of auction.
"These are estimates....The revenue to be accrued to the states would be to the tune of about Rs 59,000 crore (including royalty) and this we are taking for about 11 mines (auctioned till yesterday)," Coal Secretary Anil Swarup told reporters here.
"Essar Power MP Ltd won Tokisud North mine (in Jharkhand) for power sector. The price at which the mine closed was Rs 1,110 (per tonne)," a Coal Ministry official said.

Auction of another mine, Gare Palma IV-5 is underway.

Tokisud North mine has extractable reserves of 51.97 MT, while Gare Palma IV-5 mine has extractable reserves of 50 MT.
The firms that were vying for Tokisud North mine include Adani Power Ltd, Balco, D B Power, Dhariwal Infrastructure Ltd, GMR Chhattisgarh Energy Ltd, GVK Power Goindwal Sahib Ltd, India Power Corporation Haldia Ltd, Jaiprakash Power Ventures Ltd, Jindal Power Ltd, Lanco Amarkantak Power Ltd and The West Bengal Power Development Corp Ltd.
The companies that are bidding for Gare Palma IV-5 mine include Ambuja Cements Ltd, Balco, Hindalco Industries, Monnet Ispat and Energy Ltd, Rungta Mines Ltd, Sarda Energy and Minerals Ltd and Sesa Sterlite Ltd.

He also added that bidding price in the future for schedule III (ready to produce) mines would come down.
"I admit that prices will go down subsequently because of two reasons. First, because the work has to be done and secondly, because there is a great demand at this point of time and once the demand keeps getting met...Obviously the price will come down," he said.