The South Eastern Coalfields ltd (SECl) - the largest coal producing subsidiary of Coal India ltd (CIl) has gone for e-auction of 92,97,68 tonnes of non-coking coal and 1,3,4420 tonnes of coke and coal products from its Dankuni Coal Complex (DCC) in Hoogly district of West Bengal in Chhattisgarh.
The successful bidders of the e-auction would be required to deposit the full value of the products with Coal India ltd (CIl), officials informed.
The SECl engaged MSTC ltd as its service provider to conduct the auctions.
The company accounts for about 26.87 % of total production of CIl in 2013-14. SECl has delivered an excellent all round performance during the year 2013-14 and set an all-time record in production,off-take, wagon loading, quality improvements and optimization of overall consumer's satisfaction in terms of meeting their coal requirement.
The Centre has also signed a Memorandum of Understanding each with the states of Odisha, Jharkhand and Chhattisgarh for critical coal connectivity projects to improve transportation of coal, officials informed.
Agreement for World Bank loan of US $ 1100 million for Eastern Dedicated Freight Corridor (DFC) (Phase-2) have also been signed, they stated.
Freight train with speed of maximum 100 kms per hour will pass through Chhattisgarh in the East-West Corridor (Kolkata-Mumbai).
The train will traverse through the States of West Bengal, Jharkhand, Odisha, Chhattisgarh and Maharashtra as the Ministry of Railways has sanctioned implementation of Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) with freight train speeds of maximum 100 Kmph.
Development of two key Rail corridors in mineral-rich Chhattisgarh is now set to expand the Railway line network by 45 per cent in the State, officials stated.
The completion of 235-km Dallirajhara-Raoghat-Jagdalpur, East and East-West Rail corridor (300 km) projects will comprise a total of 535 kilometers Railway-line during the next two to four years, they stated.
Chhattisgarh currently has only 1187 route kilometers Railway lines.
is also set to earn estimated revenue of Rs51,596 crore from its five mines auctioned among 29 in the country under the provisions of Coal Mines (Special Provisions) Act, 2015 during the mining lease period.
The specified end-users of the mines are in the non-regulated sector. The mines are Chotia, Gare Palma IV-4, Gare Palma IV-5, Gare Palma IV-7, Gare-Palma Sector-IV/8.
So far 29 coal mines have been auctioned under the provisions of Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder.
The auction process for non-regulated sector viz. Iron and Steel, Cement and Captive Power was based on forward bidding process where bidders had to submit their final price offer above the applicable floor price.
In case of Power sector which is a regulated one, reverse bidding methodology was adopted where bidders had to submit bids below the applicable ceiling price, which shall be taken as fuel cost in determination of power tariff.
In case, bid price reaches Rszero in reverse bidding, the bidding is based on additional premium payable to the concerned State Government, over and above the fixed reserve price of Rs100 per tonne.
The revenue which would accrue to the coal bearing State Government concerned comprises of Upfront payment as prescribed in the tender document, Auction proceeds and Royalty on per tonne of coal production.
In addition, an estimated amount of Rs1,41,854 crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s.
Out of mines included in Schedule-II of the Act and 13 are non-operational included in Schedule-III of the Act. Milestones for development and production of coal from the auctioned coal mines have been prescribed under the Coal Mines Development and Production Agreement signed with the Successful Bidder.
Chhattisgarh CMRaman Singh recently announced that Chhattisgarh’s revenue collections have increased by 10 per cent as the Central Government had accepted the recommendations of the 14th Finance Commission.
About Rs6,400 crore extra funds will now be available for the State. The royalty on mining resources and the auction of coal mines will bring extra funds amounting to Rs2,200 crore to the State.