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Govt allocates five coal mines after gap of four years

For the first time, successful bidders will be allowed to sell 25% of coal produced in local market.

twitter-logo BusinessToday.In        Last Updated: December 5, 2019  | 17:25 IST
Govt allocates five coal mines after gap of four years
This measure will increase coal production in the country and reduce the dependence of industries on imported coal. Picture for representational purpose.

The coal ministry on Thursday approved the allocation of five coal mines. The government conducted an electronic auction in the first week of November for the allocation of these coal mines after a gap of four years. For the first time, successful bidders will be allowed to sell 25% of coal produced in local market. This measure will increase coal production in the country and reduce the dependence of industries on imported coal.

Five successful bidders for these coal mines are Birla Corporation which received allocation for Bikram coal mine and Brahampuri coal mine in Madhya Pradesh, Prakash Industries (Bhaskarpara coal mine in Chhattisgarh), Powerplus Traders Private Limited (Jagannathpur B coal mine in West Bengal) and Vedanta Ltd (Jamkhani coal mine in Odisha).

The allocation has been done with an aim to generate huge revenue for state governments where these mines are located in the form of upfront amount, royalties and other applicable taxes.

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