Ministry of Coal Transfers Rs 704 crores Upfront Amount received from Coal Mine Auctions to State Governments

OV Digital Desk
2 Min Read

The Coal Ministry transferred Rs. Upfront amount of 704 crore received from coal mine auction to six coal-producing states: Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and West Bengal. This financial transfer marks a substantial initiative to enhance and sustain the development growth of these states.

The awarded amount of Rs 704 crore represents the first installment of the advance amount for 18 coal mines which have been successfully auctioned under the 6th round and the 2nd attempt of the 5th round of commercial auctions of coal mines.


The state details of the transferred amount are as follows:

The Reform of the Coal Mine Development and Production Agreement (CMDPA) paved the way for this important development. As per CMDPA, the winning bidders presented the first installment of the advance to the Ministry of Coal. In particular, the remaining three installments will be presented directly by the bidders to the respective State Governments, further amplifying their contribution to the development of these States.

This substantial financial infusion will be used by state governments to fuel development in their regions. It will enable strategic investments in the development of infrastructure, educational facilities, health services and various welfare initiatives, uplifting communities and fostering overall growth.


Since the inception of commercial coal mining, the coal industry has contributed significantly to state government revenues. Furthermore, once the coal mines become operational, they will also contribute to the prosperity of the states through royalties and monthly bonuses. The revenue generated by these mines could be channeled by states to strengthen their financial capacity for essential welfare programs, uplift marginalized communities, and support other key development projects.




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