The Union Ministry of Coal, after four years, has approved allocation of five coalmines to different companies including Jamkhani coal block in Sundargarh district for the Vedanta Limited.
The approval was made through the electronic auction conducted by the Ministry in the first week of November. The Ministry had initiated the auction processes for 27 coalmines for non-regulated sectors previously.
As per norms, for the first time, the successful bidders will have the flexibility to sell 25% of the coal produced in the open market. This will boost the coal production in the country and reduce the dependence of industries on imported coal. Besides, the State Governments will earn huge amounts of revenue in the form of upfront amount, royalties and other applicable taxes.
The Jamkhani coalmine is likely to generate revenue worth Rs 13,057.20 crore over the next 30 years, according to reports.
