Commercial Coal Mining: Jindal Power Wins Block In Chhattisgarh On Day 3 Of Auction
On the third day of the commercial coal mining auction on Wednesday, Jindal Power won a block in Chhattisgarh, while JMS Mining made the highest bid for a mine in Madhya Pradesh.
Boulder Stone Mart won two coal blocks -- Gotitoria (East) and Gotitoria (West) -- in Madhya Pradesh, the coal ministry said in a statement.
Jindal Power made the highest bid for Gare-Palma-IV/1 block, at 25% revenue sharing. The mine has geological reserves of 84.26 million tonnes.
Besides Jindal Power, Adani Enterprises Ltd. and Hindalco Industries Ltd. were also in the race for the block.
JMS Mining made the highest bid for Urtan North in Madhya Pradesh at 9.50% revenue sharing, the statement said.
For the Urtan North block, Stratatech Mineral Resources Pvt. Ltd. and Sunflag Iron and Steel Co. were also in the race.
For Gotitoria (East) and Gotitoria (West) mines, the highest bid made by Boulder Stone Mart was at 54% evenue sharing.
Companies like Andhra Pradesh Mineral Development Corp and Dilip Buildcon were also in the race for the block, it said.
The ministry said four coal mines -- three in Madhya Pradesh and one in Chhattisgarh -- were put up for auction on the third day of the auction.
The total geological reserves of the mines put up for auction are 161 million tonnes, with a cumulative peak rated capacity of 7 million tonnes per annum.
The e-auction witnessed strong competition among the bidders with all mines attracting good premiums over the floor price.
The coal ministry has so far auctioned 13 mines.
Some of the corporate biggies that have bagged blocks so far are Vedanta, Hindalco Industries, and Aurobindo Reality and Infrastructure.
In June, Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining, a move that opens the coal sector to private players, and termed it a major step in the direction of India achieving self-reliance.