Coal ministry transfers ₹704 crore upfront amount from mine auctions to state governments
1 min read 03 Aug 2023, 03:10 PM ISTAccording to the ministry, Chhattisgarh received ₹147 crore, Jharkhand ₹130 crore, Madhya Pradesh ₹188 crore, Maharashtra ₹18 crore, Odisha ₹199 crore, and West Bengal ₹18 crore
PremiumNew Delhi: The coal ministry on Thursday said it has transferred an upfront amount of ₹704 crore to six coal-bearing states - Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal.
The payout represents the first instalment of upfront amount for 18 coal mines that were successfully auctioned under the sixth round and second attempt of fifth round of commercial coal mine auctions, it added.
According to the ministry, Chhattisgarh received ₹147 crore, Jharkhand ₹130 crore, Madhya Pradesh ₹188 crore, Maharashtra ₹18 crore, Odisha ₹199 crore, and West Bengal ₹18 crore.
Under the Coal Mine Development and Production Agreement (CMDPA), successful bidders of mine submit the upfront amount to the ministry of coal which is then transferred to states where the mines are located. Payouts take place in installments.
The remaining three installments will be directly paid by bidders to the respective state governments.
“This substantial financial infusion will be utilized 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 said.
The revenue generated from these mines could be channelled by states to strengthen their financial capacity for essential welfare programs, uplift marginalized communities, and support other key development projects.
