Thursday, August 11, 2022

Centre okays transfer of Rs 11.63 cr to Jharkhand for 2 mines allotted to NMDC & JSMDC

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  • The two coal mines are Tokisud North in Hazaribagh district and Sugia closed mine in Ramgarh district of Jharkhand

  • The Centre had allotted the two mines, along with four others, in December 2019

New Delhi: The government approved the transfer of Rs 11.63 crore to Jharkhand on Monday as first instalment of upfront payment arising out of the allocation of two coal blocks under the provisions of the Coal Mines (Special Provisions) Act, 2015. The two coal mines are Tokisud North in Hazaribagh district and Sugia closed mine in Ramgarh district of Jharkhand. While Tokisud North was allotted to NMDC, Sugia closed mine was won by Jharkhand State Mineral Development Corporation (JSMDC).

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According to the notification released by the Ministry of Coal, Rs 10.87 crore is coming from NMDC and the remaining Rs 76.70 lakh is coming from JSMDC. The Centre had allotted the two mines, along with four others, in December 2019. The Ministry had allotted the six mines — Durgapur II Taraimar/Durgapur II Sariya, Mandakini, Utkal C, Sugia Closed Mine and Tokisud North — from a list of 15 that were put up for auction for the power, iron and steel sectors. 

The backdrop

With three coal companies excavating coal from its mineral-rich soil, Jharkhand receives 30 percent of the overall royalty paid by Coal India Limited (CIL) and its subsidiaries, while the share of production from the state is 20 percent. Union Minister for Coal Pralhad Joshi had said earlier in July this year that the state is likely to get revenues of Rs 18,889 crore from the 742 Million Tonnes of coal expected to be mined by CIL in the state over the next four years. Jharkhand has been earning revenue of Rs 4,000 crore every year for the last four years from coal mining. A total of nine coal mines from the state have been put up for auction by the government for commercial mining.

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