Bhubaneswar, Dec 27 (IANS): Petroleum Minister Dharmendra Pradhan Saturday said Odisha would get about Rs.2 lakh crore from the auction of coal blocks in next 15-20 years.

"The coal bearing states would get huge benefit from the coal block auctions. Odisha alone would get tentatively Rs.1.5 lakh crore to Rs.2 lakh crore from the e-auction of identified coal blocks in 15-20 years, the process for which started Thursday," Pradhan said at a press conference here.

He said the eastern states, including Odisha, Jharkhand and West Bengal which account for most of the 204 coal blocks, will benefit from the auctions.

While mine owning states will get reserve price from mine owners to be realised by the state government concerned, they will also get royalty and other taxes, said Pradhan, who hails from Odisha.

The central government is reallocating the coal blocks whose allocations were cancelled by the Supreme Court.

Recently, Coal Secretary Anil Swarup said the coal-rich states stand to earn Rs.7 lakh crore over the next 30 years from the auction.

Reacting over the Odisha government's accusation of neglect by the central government, the minister said the state government has launched a proxy war against the centre.

"Whenever non-Congress parties have come to power at centre, especially under the (Atal Bihari) Vajpayee and (Narendra) Modi governments, the state has received maximum fund.

"The centre has increased royalty on mineral sector, now Odisha will get benefit from coal auction and my ministry has proposed to invest Rs.1 lakh crore in the state in 5-7 years," said the petroleum minister.

He also denounced the increase of value added tax (VAT) on petrol and diesel by Odisha government making the products costlier.

Speaking on the proposed visit of national BJP president Amit Shah Jan 6-7, he said the party was giving importance on seven states, including Odisha, where the organisational position is not so strong, to strengthen the party from the grassroots level.