Govt eyes Rs 1.47 lakh crore from auction, allotment of 92 coal blocks

The government is targeting revenue of Rs 1.47 lakh crore from the allotment and auction of 92 coal blocks out of those being given out in the first phase to private as well as public sector entities.

In the first phase a total of 101 mines are being allocated, including 65 through the auction route. Of these, 63 mines would be given to the power sector, while the rest would be for sectors like steel and cement.

The 92 coal blocks, to be both allotted and auctioned, have geological reserves of 18,446 million tonnes, according to an official source.

Of the 92 coal blocks, 57 blocks are for the power sector and 35 mines are for non-power sector and captive power plants, the source said.

The coal 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, said the source.

While in the case of non-power or captive power plant, coal blocks having geological reserves of 3,141, at a price of Rs 295 per tonne, comes to around 92,696 crore, he added.

"If we add revenue from both power and non-power sector the total revenues likely to be earned comes to around Rs 2.45 lakh crore," the source said further, adding, "If extractable reserves are taken as 60 per cent of the geological reserves, the total revenue would be around Rs 1,47,448 crore."

In a major blow to the coal and power sector, the Supreme Court had, in September, termed the allocation of 204 coal mines since 1993 as "arbitrary and illegal".

The government had earlier finalised rules for auction or allotment of 204 coal mines that were de-allocated by the apex court.

Last week, the government had increased the number of coal mines to be auctioned or allotted in the first tranche to 101, from 92.