New Delhi: The Ministry of Coal has transferred Rs 704 crore to six coal-bearing states as an upfront payment received from the auction of coal mines in these states for commercial mining. In a statement released on Thursday, the ministry said, “The Ministry of Coal has transferred Rs 704 crores upfront amount received from auction of coal mines to six coal-bearing states — Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and West Bengal. This financial transfer marks a substantial initiative to empower and support the developmental growth of these states.”
“The allotted amount of Rs 704 crores represents the first installment of the upfront amount for 18 coal mines that were successfully auctioned under the 6th round and 2nd attempt of the 5th round of commercial coal mine auctions,” said the Coal Ministry.
According to the figures shared by the government, Odisha received the biggest chunk of the total payment made to states by the Centre — Rs 199.81 crore. It was followed by Madhya Pradesh, which received Rs 188.85 crore, Chhattisgarh got Rs 147.18 crore, Jharkhand Rs 130.99 crore, while Maharashtra and West Bengal received Rs 18.75 crore each.
“Reform of Coal Mine Development and Production Agreement (CMDPA) paved the way for this significant development. As per the CMDPA, successful bidders have submitted the first installment of the upfront amount to the Ministry of Coal. Notably, the remaining three installments will be directly submitted by the bidders to the respective state governments, further amplifying their contribution to the development of these states,” said the Ministry of Coal.
“This substantial financial infusion will be utilised by state governments to fuel development in their regions. It will enable strategic investments in infrastructure development, educational facilities, healthcare services and various welfare initiatives, uplifting communities and fostering overall growth,” the ministry added.
“Since the inception of commercial coal mining, the coal sector has been significantly contributing revenue to the state governments. Moreover, once the coal mines become operational, they will also contribute to the states’ prosperity through royalties and monthly premiums. The revenue generated from these mines could be channelled by the states to strengthen their financial capacity for essential welfare programs, uplift marginalised communities, and support other key development projects,” said the ministry.