The proceeds from the e-auction of coal mines will go entirely to the States where they are located — mainly in Jharkhand, Odisha, West Bengal and Chhattisgarh.
Announcing this here on Monday, Union Finance Minister Arun Jaitley said this would lead to financial empowerment of these States.
In the first round of e-auction to be completed within the next three to four months, only end-users would be eligible to bid for captive mines and trading in coal would be barred, Mr. Jaitley said.
The land to be acquired back from owners of mines that stand de-allocated following the Supreme Court ruling would be valued by an independent authority under the Coal Nationalisation Act, he said.
It would then be leased to the successful bidders in the e-auction.
