Govt garners Rs 1.57 lakh crore on day 4 of second tranche of coal block auctions

Strengthening the national auditor’s claims that allocation of mines over the years had caused considerable losses to the exchequer, the government has garnered Rs 5164 crore from the sale of two mines to Jaypee Cement and Ambuja Cement, with the cumulative proceeds from the auction swelling to Rs 1.57 lakh crore.

In a fierce biddings on the fourth day of second tranche of ongoing auctions, which lasted for hours, while Ambuja Cement managed to clinch Gare-Palma Sector-IV/8 block in Chhattisgarh by biddng Rs 2291 per tonne, Jaypee Cement Corporation grabbed Mandla-South block in Madhya Pradesh, by bidding at Rs 1852 per tonne. Auction for Mandla South, began at Rs 1,850 per tonne, while for Gare Palma IV/8 started at Rs. 1,675 per tonne.

Put together in these four days of auction, the government has raised Rs 1.57 lakh crore, which includes Rs 1 lakh crore from auction of 19 mines in the first round. Additionally, two more coal blocks – Utkal C and Lohari – have been put up for auction on Monday. The amount of proceeds has been calculated based on extractable reserves and highest bid price.

The auctions follow the Supreme Court’s decision last year to cancel the allocation of 204 coal mines. Prime Minister Narendra Modi had earlier this month  raised some doubts after he underscored CAG’s astronomical Rs 1.86 lakh crore loss figure in coal block allocation, but with auction of less than 10% of those mines (19 mines in first tranche) alone  that has garnered Rs 1.10 lakh crore has proved these claims to be right.