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Jharkhand to get Rs 18,889 cr revenues from coal mined by CIL in next 4 yrs

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

Topics
Jharkhand | coal industry | Coal India Limited

Press Trust of India  |  New Delhi 

coal
The minister also said commercial coal mining is going to fuel development in Jharkhand in the coming years, according to a statement by the coal ministry. Photo: Shutterstock.com

is likely to get revenues of around Rs 18,889 crore from the 742 million tonnes of coal expected to be mined out by CIL in the state over the next four years, Coal Minister Pralhad Joshi said on Thursday.

"Coal -- CCL (Central Coalfields Ltd), BCCL (Bharat Coking Coal Ltd) and ECL (Eastern Coalfields Ltd) are expected to mine out 742 million tonne (MT) of coal in the next 4 years, paying revenue of almost Rs 18,889 crore," the minister said.

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

The holding company of these coal firms, Coal India Ltd (CIL), pays about 30 per cent of its total royalty to alone, while the share of production from the state is about 20 per cent, he said.

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

The minister also said commercial coal mining is going to fuel development in Jharkhand in the coming years, according to a statement by the coal ministry.

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 the people of the state, the minister said.

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

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So far, the response for blocks put up for auction for commercial mining has been very good, he said, and stressed that 5-10 bidders have shown interest for each of the nine blocks.

Emphasising the need for commencement of commercial coal mining, Joshi said India still meets a fifth of its annual coal requirement through imports.

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 300,000 direct and indirect jobs.

Highlighting the importance of mining for Jharkhand, Joshi said the sector is the lifeline of the state and plays a crucial role in its development.

Coal operating in the state have been working for decades now, excavating coal out of the mineral-rich soil of Jharkhand and paying revenue in return to the state for its development.

First Published: Thu, July 30 2020. 18:55 IST
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