India’s ministry of coal has allotted two coking coal mines in Jharkhand – one to the National Mineral Development Corporation (NMDC), and one to the Rashtriya Ispat Nigam Ltd (RINL).
The two central public sector enterprises (CPSEs) will operate the mines to boost overall coal production by 10mt per annum.
The ‘Rohne’ Coal Mine has been allocated to NMDC. Besides coal sales, NMDC will also supply coking coal mined to its upcoming steel plant at Nagarnar, Chattisgarh.
The ‘Robodih OCP’ coal mine, allocated to RINL, will generate coking coal for captive use in the production of iron and steel.
These mines will, over its lifetime, generate Rs7,000 crore($986mn) in revenue for Jharkhand, besides royalties and other applicable taxes.
Both NMDC and RINL will also set up washeries for washing the coal.
The mines have been allotted under the Coal Mines (Special Provision) Act, 2015, and come in addition to five coal mines allocated to successful bidders, and six mines allotted to PSUs.
In all, the 13 mines will add at least 35mt per annum coal to domestic production. Apart from royalties and applicable taxes, the mines are slated to generate Rs 31,000 crore($4369mn) revenue over the lifetime for various state governments.