The Ministry of Coal made a significant move on Thursday by transferring an upfront amount of ₹704 crore to six coal-bearing states in India. The payout marks the first instalment of the upfront amount for 18 coal mines that were successfully auctioned under the sixth round and the second attempt of the fifth round of commercial coal mine auctions.
The six states that received the upfront payment are Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal. Chhattisgarh received ₹147 crore, Jharkhand ₹130 crore, Madhya Pradesh ₹188 crore, Maharashtra ₹18 crore, Odisha ₹199 crore, and West Bengal ₹18 crore.
Under the Coal Mine Development and Production Agreement (CMDPA), successful bidders of the coal mines are required to submit the upfront amount to the Ministry of Coal, which is then transferred to the respective states where the mines are located. These payouts are made in installments.
It is worth noting that the remaining three installments will be directly paid by the bidders to the respective state governments. This financial arrangement enables the states to receive the necessary funds for development and welfare initiatives associated with the coal mines.
The significant financial infusion received by the six states will play a crucial role in fueling development and fostering growth in their respective regions. The funds can be strategically invested in infrastructure development, educational facilities, healthcare services, and various welfare initiatives. Moreover, these resources will be instrumental in uplifting marginalized communities and supporting essential development projects in the states.
The revenue generated from the operation of these coal mines holds immense potential for the states to strengthen their financial capacity further. This can be channeled towards crucial welfare programs and projects aimed at uplifting the lives of citizens and supporting the overall development of the states.
With this financial support, the states will be better equipped to address the developmental needs of their regions and improve the standard of living for their residents. The investments in key sectors will contribute to the socio-economic growth of the states, driving progress and prosperity in the long run.