India is holding its first commercial coal mine auctions bang in the middle of the coronavirus pandemic.
Coal mining states stand to lose. Here's how.
#Thread
Coal mining states stand to lose. Here's how.
#Thread
Loss of forest cover, communities face displacement, yet the coal mining states haven't been consulted – as Jharkhand has stated in a suit filed in the Supreme Court.
The coal mining states stand to lose even in terms of revenues.
The coal mining states stand to lose even in terms of revenues.
Economic conditions are likely to depress the bid offers in the coal auctions – which makes it even more important for the Modi government to ensure the offers do not fall below a certain threshold by fixing an appropriate floor benchmark.
Here's where things get interesting.
Here's where things get interesting.
The floor price was fixed at Rs 150 per tonne in the 2015 coal mine auctions.
Our calculations show it could fall to as low as Rs 48 per tonne in the 2020 auctions.
Our calculations show it could fall to as low as Rs 48 per tonne in the 2020 auctions.
A lower floor benchmark could set the stage for lower bids, leading to lower revenues for coal mining states like Jharkhand, Chhattisgarh, Odisha, Bengal.
Read the full story:
scroll.in/article/969802…
Read the full story:
scroll.in/article/969802…
