The success of the recently concluded coal mines auctions is poised to increase Jharkhand´s royalty income from coal mines by 73.5 per cent, as the state now aims to receive Rs.5,500 crore as royalty income each year.
´We will be earning Rs.5,000 crore as royalty income each year throughout the lifespan of a mine´, the state´s Chief Secretary Rajbala Verma said.
With the lifespan of the mines estimated to be 30 years, which in most of the cases is also the lease period of the mine, the Jharkhand government will be earning a total of Rs.1,50,000 crore in the next 30 years from this process.
The Union coal ministry has auctioned 31 coal mines so far in three tranches under the provisions of the Coal Mines (Special Provisions) Act, 2015, under which Jharkhand owns 10 mines.
During 2015-16, against the mining royalty collection target of Rs.5,500.10 crore, the state received 86.74 per cent of the target at Rs.4,770.59 crore.