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Coal auction to raise Rs1.47 lakh crore boost jobs: Vedanta Chief

New Delhi:  Coal block auctions will fetch a whopping Rs 1.47 lakh crore and boost job creation, mining baron Anil Agarwal, who heads Vedanta Resources, said on Monday."Coal auction will earn Rs 1.47 lakh crore

PTI [ Updated: February 23, 2015 19:00 IST ]
coal auction to raise rs1.47 lakh crore boost jobs vedanta
coal auction to raise rs1.47 lakh crore boost jobs vedanta chief

New Delhi:  Coal block auctions will fetch a whopping Rs 1.47 lakh crore and boost job creation, mining baron Anil Agarwal, who heads Vedanta Resources, said on Monday.

"Coal auction will earn Rs 1.47 lakh crore and boost jobs: Mining is people-intensive," Agarwal said in a tweet after the first tranche of auctions of 19 coal blocks, which closed on Sunday.

Vedanta group has bid for the most number, 14 coal mines, putting in as many as 25 bids through several group firms but could grab only two through BALCO in the first round of auctions that concluded on Sunday.

However, Coal Secretary Anil Swarup said after the first round of auctions that Rs 1.09 lakh crore of e-auction amount and Rs 12,800 crore royalty would go to states in the next 30 years. Agarwal, who has been advocating for the auction of natural resources, said: "Auction in Oil&Gas, fertilisers, metals can kick-start economy."

Pinning hopes on Narendra Modi-led government to bring in policy reforms for attracting global investment he had earlier said that he was always against allotment of natural resources and was in favour of auctions.

Vedanta Group firm Balco had won Chotia and Gare Palma IV/1 blocks, both in Chhatisgarh in the first tranche of auctions on February 17 and 21 respectively. For Chotia, the company had quoted Rs 3,025 a tonne, the highest bid beating rivals Godawari Power & Ispat Ltd, Hindalco Industries, Prakash Industries, Rungta Mines and Ultratech Cement. The mine has extractable reserves of 13.57 million tonnes (MT).

The e-auction proceeds for the mine are calculated at Rs 5,593 crore (for 30 years) for the state besides Rs 489 crore royalty. It bagged another block Gare Palma IV-1, quoting Rs 1,585 per tonne for the mine which has extractable reserves of 49.57 MT. This is expected to generate an estimated Rs 7,856 crore for the state.

After the Supreme Court cancelled allocation of 204 mines in September, the government decided to auction the blocks. It had put 19 blocks on sale in the first tranche. The second round of auction in which government has put on sale 21 mines will begin from February 25.

Vedanta Resources is a London Stock Exchange listed, globally diversified natural resources major with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Power and Oil & Gas.

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