Coal auction proceeds to cross Rs 2 lakh crore, Spectrum auction garners bids worth Rs 94,000 crore

New Delhi

Proceeds from the ongoing coal block auctions are likely to cross Rs 2 lakh crore, surpassing CAG’s estimate of Rs 1.86 lakh crore loss on account of the allocation of blocks without auction during the UPA regime.

“Likely proceeds from coal block auctions (may) cross Rs 2 lakh crore. These include e-auction proceeds, royalty proceeds and upfront payment,” Coal Secretary Anil Swarup said.

“Apart from above, around Rs 97,000 crore of additional tariff benefit will accrue to the consumers of power through reverse auction of coal blocks,” he added.

His remarks come at a time when the government is set to garner over Rs 11,300 crore from sale of two mines including Utkal C to Monnet Power on Monday, the fifth day of the second tranche of auctions.

The government kitty swelled by an estimated Rs 9,537.22 crore from sale of Utkal C mine in east Indian state of Odisha to Monnet Power Company earlier in the day.

Bidding for Lohari block in Palamu district of Jharkhand is underway and as per present bid price of Rs 1,992 a tonne, it will cross a revenue of Rs 1,800 crore.

“Monnet Power was the highest bidder at (Rs) 770 (a tonne) for Utkal C Coal Block. Bidding still underway for Lohari. Presently at 1992,” Swarup said.

The cumulative Rs 2 lakh crore revenue to the exchequer from the sale of 32 mines so far, includes over Rs 1 lakh crore from sale of 19 mines in the first tranche.

Indian Prime Minister Narendra Modi had said earlier this month that Comptroller and Auditor General of India’s (CAG) astronomical Rs 1.86 lakh crore loss figure in coal block allocations had raised some doubts initially, but the auction of less than 10 per cent of those mines (19 mines in first tranche) alone has garnered Rs 1.10 lakh crore.

Official auditor CAG had said that the mines allocation without auction during the United Progressive Alliance (UPA) period led to a loss of staggering Rs 1.86 lakh crore. The allotment of over 200 coal mines were later cancelled following a Supreme Court order, which led to the government announcing the ongoing auction.

Monnet Power Company bagged the Utkal C mine in Odisha on Monday – 5th day of the second phase of coal block auctions – for an estimated Rs 9,537.22 crore.

Utkal C, meant for the power sector has an extractable reserve of 123.86 million tonnes (MT). It was previously allotted to Utkal Coal Ltd.

Spectrum auction garners bids worth Rs 94,000 crore

The government has garnered Rs 94,000 crore worth of bids from telecom players at the end of five days of spectrum auction today.

“The bidding has taken place in all bands. At present, a value of approximately Rs 94,000 crore has been committed by bidders in respect of provisionally won spectrum. There is still spectrum, which is yet to be sold. Bidding would recommence tomorrow,” the Department of Telecom (DoT) said.

Seven rounds of bidding were completed today and till now 31 rounds of bidding has taken place, the DoT added.

The government on Saturday had crossed the targeted minimum amount of Rs 82,000 crore from sale of 2G and 3G airwaves. At the end of 24 rounds of bidding on Saturday, the value stood at Rs 86,000 crore.

If bidding continues at robust pace, the government is likely to rake in over Rs 1 lakh crore from spectrum sale.

The government will not release results of the auction as a case in pending before the Supreme Court. The next hearing on the case is on March 26.

In 800 Mhz band, there was excess demand in three circles– Andhra Pradesh, Assam and North East– at the end of round 31, whereas 1,800 Mhz band saw good activity with excess demand in Kolkata.

Incumbents Bharti Airtel and Vodafone are locked with Reliance Jio to protect their spectrum they need to carry voice and data in the world’s second-biggest smartphone market. In all, eight bidders are in the fray.

The auction is the biggest ever sale of 2G and 3G airwaves where government is selling spectrum in four bands: 2,100 megahertz (Mhz), 1,800 MHz, 900 MHz and 800 MHz.

There was no bidding in Mumbai, Delhi and Andhra Pradesh in 2100 MHz band till now.

A total of 380.75 MHz of spectrum is on offer in the premium 900 MHz band, 1,800 MHz and 800 MHz, while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.

Most of the spectrum put up for auction is at present held by Airtel, Vodafone, Idea Cellular and Reliance Telecom.

Their licences are expiring in 2015-16.

Mobile licences for nine circles of Idea Cellular, six circles of Airtel and seven circles each of Vodafone and Reliance Telecom are coming up for renewal.

The 3G and BWA auction together fetched the government over Rs 1.05 lakh crore in 2010. The government had raked in Rs 62,162 crore from the last spectrum auction held in February 2014.

“Auction for Utkal C block for power sector under Talcher coalfield in Angul district of Odisha, began at 11 am with a Rs 100 a tonne bid. For Lohari, the auction began at Rs 1,690 per tonne,” an official told PTI.