States get ₹704Cr as upfront charge from coal mine auctioning

Ministry of coal transfers 1st instalment of upfront amount to Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha & West Bengal rest 3 instalment to get directly from bidders

New Delhi: The ministry of coal (MoC) has transferred ₹704 crores upfront amount received from auction of coal mines to six coal bearing states, including Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and West Bengal. This financial transfer marks a substantial initiative to empower and support developmental growth of these states, said a MoC officer.

The allotted amount of ₹704 crores is the first instalment of upfront amount for 18 coal mines that were successfully auctioned under 6th round and 2nd attempt of 5th round of commercial coal mine auctions.

State-wise details of amount transferred




Madhya Pradesh



West Bengal

Upfront amount (Cr)







Reform of coal mine development and production agreement (CMDPA) paved the way for this significant development. As per the CMDPA, successful bidders have submitted the first instalment of the upfront amount to the MoC. Notably, the remaining three instalments will be directly submitted by the bidders to the respective state governments, further amplifying their contribution to the development of these states.

Also Read: Coal ministry to sign agreements for auctioning of 28 coal mines

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

Also Read: Coal ministry launches star rating process for coal & lignite mines

Since the inception of commercial coal mining, the coal sector has been significantly contributing revenue to the state governments. Moreover, once the coal mines become operational, they will also contribute to the states’ prosperity through royalties and monthly premiums. The revenue generated from these mines could be channelled by the states to strengthen their financial capacity for essential welfare programs, uplift marginalized communities, and support other key development projects.

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