The Government is targeting revenue of Rs 1.47 lakh crore from the allotment and auction of 92 cancelled coal blocks in the first round of auction. Out of the 92 cancelled coal blocks, 57 mines will be allocated to power sector while 35 other blocks to non-power sector and captive power plants.
The 92 coal blocks have geological reserves of 18,446 million tones. The blocks for the power sector have geological reserves of 15,305 million tonnes and the revenue from these blocks at a base price of Rs 100 per tonne, is likely to come to around Rs 1.53 lakh crore. For the non-power or captive power plant blocks having geological reserves of 3,141, at a price of Rs 295 per tonne, comes to around 92,696 crore. The government stated that total revenues from both power and non-power sector are likely to come at around Rs 2.45 lakh crore and if extractable reserves are taken as 60 percent of the geological reserves, the total revenue would be around Rs 1,47,448 crore.
In last week, the government has increased the number of coal mines to be auctioned or allotted in the first tranche to 101, from 92. Out of which 65 mines will be allocated to private players while 36 other blocks will be directly allotted to state-owned companies. The government had earlier also finalised rules for auction or allotment of 204 coal mines that were quashed by Supreme Court in September.
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