 "A goods train loaded with coal")
The success of the recently concluded coal mines auctions is poised to increase Jharkhand’s royalty income from coal mines by 73.5 per cent, as the state now aims to receive Rs 5,500 crore as royalty income each year.
“We will be earning Rs 5,000 crore as royalty income each year throughout the lifespan of a mine”, the state’s Chief Secretary Rajbala Verma said.
With the lifespan of the mines estimated to be 30 years, which in most of the cases is also the lease period of the mine, the Jharkhand government will be earning a total of Rs 1,50,000 crore in the next 30 years from this process.
The union coal ministry has auctioned 31 coal mines so far in three tranches under the provisions of the Coal Mines (Special Provisions) Act, 2015, under which Jharkhand owns 10 mines.
During 2015-16, against the mining royalty collection target of Rs 5,500.10 crore, the state received 86.74 per cent of the target at Rs 4,770.59 crore. Earlier in 2015, the government had set a target of Rs 4,500 crore, which was revised upwards, owing to the coal mines allocation by the central government.
Royalty from coal mines accounted for Rs 2,718.01 crore or nearly 57 per cent of the total royalty earned in the last financial year, while royalty from the coal mines’ auctions accounted for Rs 452.84 crore, making the total income from coal mines to Rs 3,170.85 crore.
As the companies, who have been allotted coal mines start operations, the income from the auctions will also go up. According to the Indian Minerals Yearbook 2013, the state has 12 coalfields (176 mines) with a total reserve of 8,0701.19 million tonne (mt) of which 41,155.36 mt is proven, 32986.36 mt is indicated and another 6559.47 mt is inferred. Most of the coal in the state is coking in nature which is mostly used by the country’s iron, steel and cement plants.
Besides the coal mines, Jharkhand has also invited bids for auctioning its first gold mine at Pahadia under the composite licence route.
According to a tender notice on the MSTC website, the Pahadia gold mine is spread across 272.651 hectares and is estimated to have a 1.162 mt of gold reserves.
Boasting of tackling the Maoist menace through innovative policy which was previously hampering industrial acitivty, Jharkhand is now projecting itself as the next investment destination, claiming to have drawn proposals and projects worth Rs 21,308.94 crore in the last 20 months.
Out of the total project proposals, so far, units who have started production account for only Rs 1,090.10 crore while units worth an investment of Rs 17,532.12 crore are under the construction phase which is poised to be over by 2019. Also, projects worth Rs 735 crore are awaiting land approvals.
Major projects under the construction phase account for Electro Steel’s Bokaro plant worth Rs 12,000 crore, Usha Martin’s expansion project in Jamshedpur of Rs 3,891 crore and Ramkrishna Forging’s new unit at Sareikela worth Rs 765 crore.
“If somebody comes up with an investment proposal and wants to set up a plant, we will provide the required land and electricity within one month”, the state’s Chief Minister, Raghubar Das said here, claiming that Jharkhand is on its way to become an investment destination after Maoist activities were curbed down. “Since the last 20 months (after Das’ BJP led government came into power), there hasn’t been a single act of Maoism or Naxalism which has hampered industrial activity or business in the state”, he said.
The state government has come up with an Open Jail policy under which Maoist guerrillas can surrender and avail state funded compensation package, stay with their families in cottages under police surveillance and will be provided with vocational training.
“The response has been encouraging and the Maoists are surrendering in huge numbers”, the minister added.
Jharkhand has a land-bank of 1,00,000 acres and acquires the land at a five times higher rate than the prevalent market price to set up industries. The state government also helps negotiate land sale between the owners and interested investors if the need be so.
