States to get Rs 466 crore as 1st tranche from coal auction

States will receive Rs 466 crore as first tranche from auction of coal blocks, while the Centre will not keep any revenue from this upfront payment by bidders, said a top official.

"First tranche amount of Rs 466 crore goes to the states by way of upfront payment received from bidders in coal block auctions," Coal Secretary Anil Swarup has said in a tweet.

"No revenue gain for the Centre. The entire amount out of coal block auctions will go to the States. Cooperative federalism at its best," he added.

Also Read: Coal block auction money to wipe out fiscal deficit of Indian states

Government has garnered over Rs 2 lakh crore by auctioning just 33 blocks in two phases, surpassing the Rs 1.86 lakh crore loss estimated earlier by government auditor CAG for allotment of mines without auction.

The government is all set to auction another set of 15-20 coal blocks this month following passage of the coal mines bill in Parliament.

"The government is planning to come out with Notice Inviting Tender for auction of 15-20 mines by the third-week of April," an official had earlier said.

Parliament had last month approved Coal Mines (Special Provisions) Bill, 2015, which forms part of NDA government's reforms agenda, in the nick of time on the last day of the first half of Budget session.

The government had also last allotted 38 mines to central and state public sector units, including power major NTPC, DVC and steel giant SAIL.