Lok Sabha Question No. 42 (STARRED), answered on 2015-07-23
Subject: Auction of Coal Blocks/Mines
Ministry: COAL
Asked by: MANOJ RAJORIA, BHARTRUHARI MAHTAB

**Government of India**

**Ministry of Coal**

**Lok Sabha**

**Starred Question No. 42**

**To be answered on 23.07.2015**

**Auction of Coal Blocks/Mines**

***42.	DR. MANOJ RAJORIA:**

**SHRI BHARTRUHARI MAHTAB:**

Will the Minister of Coal be pleased to State:

(a) the details of coal blocks/mines auctioned/re-allocated and the revenue generated as a result thereof, State-wise;

(b) whether the cases of cartelisation/ irregularities have come to the notice of the Government in the auction of the said coal blocks in the country, if so, the details thereof along with the corrective action taken thereon;

(c) whether the Government proposes to start next phase of auctions of coal blocks/mines in the country, if so, the details thereof along with the coal blocks/mines likely to be auctioned and revenue likely to be generated thereof, State-wise; and

(d) whether the Government also proposes to reserve some of the coal blocks/ mines for the unregulated sector and if so, the details thereof?

**ANSWER**

**MINISTER OF STATE (I/C) FOR COAL, POWER, NEW & RENEWABLE ENERGY**

**(SHRI PIYUSH GOYAL)**

(a) to (d):	A statement is laid on the Table of the House.

*****

**Statement referred to in reply to parts (a) to (d) in respect of Lok Sabha Starred Question No. 42 for answer on 23.07.2015 asked by Dr.  Manoj  Rajoria and Shri Bhartruhari Mahtab regarding auction of Coal Blocks/Mines.**

**(a):** The estimated revenue which would accrue to coal bearing States from the 29 coal mines auctioned so far during the life of mine / lease period is Rs. 1,93,512 crores. Further an estimated amount of Rs. 1,41,854 crores would accrue to coal bearing States from the allotment of 38 coal mines to Central and State PSUs over the life of mines / lease period.

State wise details of the Coal Mines auctioned and allotted along with the first installment of upfront amount already received is given in Table-I and Table-II below respectively.

**Table-I**

|                 |                          |                                 |                                                    |
|-----------------|--------------------------|---------------------------------|----------------------------------------------------|
| **Sl.**  **No** | **State**                | **Name of Coal Mine auctioned** | **1st Instalment of Upfront Amount**  **(In Rs.)** |
| **1**           | **Chhattisgarh**         | Chotia                          | 67476874                                           |
|                 |                          | Gare Palma IV/4                 | 55210195                                           |
|                 |                          | Gare Palma IV/5                 | 83206200                                           |
|                 |                          | Gare Palma IV/7                 | 124865245                                          |
|                 |                          | Gare Palma Sector IV/8          | 74025205                                           |
|                 | **Chhattisgarh Total**   |                                 | **404783719**                                      |
| **2**           | **Jharkhand**            | Brinda and Sasai                | 38617805                                           |
|                 |                          | Dumri                           | 61498499                                           |
|                 |                          | Ganeshpur                       | 438888105                                          |
|                 |                          | Jitpur                          | 136041205                                          |
|                 |                          | Kathautia                       | 273874334                                          |
|                 |                          | Lohari                          | 14370825                                           |
|                 |                          | Meral                           | 23896509                                           |
|                 |                          | Moitra                          | 165629945                                          |
|                 |                          | Tokisud North                   | 351622963                                          |
|                 | **Jharkhand Total**      |                                 | **1504440190**                                     |
| **3**           | **Madhya Pradesh**       | Amelia (North)                  | 426647607                                          |
|                 |                          | Bicharpur                       | 45884393                                           |
|                 |                          | Mandla North                    | 102443717                                          |
|                 |                          | Mandla South                    | 16105505                                           |
|                 |                          | Sial Ghoghri                    | 19949354                                           |
|                 | **Madhya Pradesh Total** |                                 | **611030576**                                      |
| **4**           | **Maharashtra**          | Belgaon                         | 19747039                                           |
|                 |                          | Marki Mangli - III              | 13930162                                           |
|                 |                          | Nerad Malegaon                  | 21926204                                           |
|                 | **Maharashtra Total**    |                                 | **55603405**                                       |
| **5**           | **Odisha**               | Talabira - I                    | 125153256                                          |
|                 |                          | Utkal C                         | -                                                  |
|                 |                          | Mandakini                       | -                                                  |
|                 | **Odisha Total**         |                                 | **125153256**                                      |

….2/-

-2-

| **6**                                                                                   | **West Bengal**       | Ardhagram  *   | 25557181       |
|-----------------------------------------------------------------------------------------|-----------------------|----------------|----------------|
|                                                                                         |                       | Sarisatolli    | 617137021      |
|                                                                                         |                       | Trans Damodar  | 74167452       |
|                                                                                         | **West Bengal Total** |                | **716861654**  |
| **Grand Total**                                                                         |                       |                | **3417872800** |
| *** Successful Bidder has been appointed as Designated Custodian due to a court case.** |                       |                |                |

**Table-II**

| **Sl.**  **No.**   | **State**              | **Name of Coal Mine allotted**        | **1st Instalment of Upfront Amount**  **(In Rs.)**   |
|--------------------|------------------------|---------------------------------------|------------------------------------------------------|
| **1**              | **Chhattisgarh**       | Gare Palma Sector I                   | 250000000                                            |
|                    |                        | Gare Palma Sector II                  | 759829080                                            |
|                    |                        | Gare Palma Sector III                 | 199721845                                            |
|                    |                        | Gidhmuri, Paturia                     | 250000000                                            |
|                    |                        | Parsa                                 | 225280497                                            |
|                    |                        | Parsa East, Kanta Basan               | 662088255                                            |
|                    |                        | Talaipalli                            | 699748390                                            |
|                    | **Chhattisgarh Total** |                                       | **3046668067**                                       |
| **2**              | **Jharkhand**          | Badam                                 | 133804662                                            |
|                    |                        | Banhardih                             | 250000000                                            |
|                    |                        | Chatti Bariatu,  Chatti Bariatu South | 295979556                                            |
|                    |                        | Kerandari                             | 272162861                                            |
|                    |                        | Pachhwara Central                     | 352996001                                            |
|                    |                        | Pachhwara North                       | 601003050                                            |
|                    |                        | Rajbar E & D                          | 250000000                                            |
|                    |                        | Saharapur – Jamarpani                 | 250000000                                            |
|                    |                        | Sitanala                              | 8867710                                              |
|                    | **Jharkhand Total**    |                                       | **2414813840**                                       |
| **3**              | **Maharashtra**        | Baranj I to IV, Kiloni, Manora Deep   | 126070001                                            |
|                    | **Maharashtra Total**  |                                       | **126070001**                                        |
| **4**              | **Odisha**             | Dulanga                               | 286259101                                            |
|                    |                        | Manoharpur,  Dipside Manoharpur       | 310581545                                            |
|                    |                        | Naini                                 | 250000000                                            |
|                    | **Odisha Total**       |                                       | **846840646**                                        |
| **5**              | **Telangana**          | Tadicherla-I                          | 95085761                                             |
|                    | **Telangana Total**    |                                       | **95085761**                                         |
| **6**              | **West Bengal**        | Barjora                               | 6699224                                              |
|                    |                        | Barjora (North)                       | 139024733                                            |
|                    |                        | Gangaramchak, Gangaramchak - Bhadulia | 26057899                                             |
|                    |                        | Khagra Joydev                         | 124270059                                            |
|                    |                        | Tara (East) & (West)                  | 54405958                                             |
|                    |                        | Kasta (East)                          | -                                                    |
|                    | **West Bengal Total**  |                                       | **350457873**                                        |
| **Grand Total**    |                        |                                       | **6879936188**                                       |

……3/-

-3-

| **Proceeds from upfront amount transferred to the Coal Bearing States so far till June, 2015 ( In Rs.)**   |                |                |
|------------------------------------------------------------------------------------------------------------|----------------|----------------|
| 1                                                                                                          | Jharkhand      | 625500000      |
| 2                                                                                                          | West Bengal    | 716900000      |
| 3                                                                                                          | Chhattisgarh   | 330800000      |
| 4                                                                                                          | Maharashtra    | 33700000       |
| 5                                                                                                          | Madhya Pradesh | 594900000      |
| 6                                                                                                          | Odisha         | 125200000      |
| **Total**                                                                                                  |                | **2427000000** |

(b):	A few complaints were received regarding cartelization in bidding. The Government has not approved the bids in case of 4 coal mines namely Gare Palma IV/2&3, Gare Palma IV/1 and Tara as final closing bid price was not found to be reflecting fair value.  In order to prevent the possibility of cartelization/price manipulation, auction design has been slightly modified whereby multiple bids submitted by a Company or a Group in initial price offer (IPO) for a coal mine would be counted as one for the purpose of determining the eligibility  to participate in final price offer (FPO).

(c) & (d): The Central Government has issued order to the Nominated Authority for auction of 10 Coal Mines (2 Schedule II and 8 Schedule III) earmarked for the Non Regulated Sector (Cement, Iron & Steel, Captive Power Plants) in the third tranche. Accordingly, Notice Inviting Application has been published by the Nominated Authority on 08.06.2015. Details are as under:

| **Coal Mines / Blocks put out  for Auction in the 3**  **rd**  **Tranche**   |                             |                |
|------------------------------------------------------------------------------|-----------------------------|----------------|
| **Sl. No**                                                                   | **Name of Mine/Coal Block** | **State**      |
| 1                                                                            | Dongri Tal - II             | Madhya Pradesh |
| 2-5                                                                          | Kosar Dongergaon            | Maharashtra    |
| 2-5                                                                          | Marki Mangli-IV             | Maharashtra    |
| 2-5                                                                          | Marki Mangli-I              | Maharashtra    |
| 2-5                                                                          | Majra                       | Maharashtra    |
| 6-7                                                                          | Parbatpur-Central           | Jharkhand      |
| 6-7                                                                          | Chitarpur                   | Jharkhand      |
| 8-9                                                                          | Bhaskarpara                 | Chhattisgarh   |
| 8-9                                                                          | Sondiha                     | Chhattisgarh   |
| 10                                                                           | Jamkhani                    | Odisha         |

**The revenue likely to be generated from the auction of these mines shall depend on the closing bid prices in the e-auction.**

*********