Coal mine auctions: Bidding for Chhattisgarh’s Gare Palma breaches document

2020/11 09 21:11

The final day of the business coal mining auctions noticed new information being created. Sarda Power and Minerals Ltd bagged the Gare Palma IV/7 coal mine in Chhattisgarh, the one one on provide on the ultimate day of the primary spherical, at a closing bid worth of 66.75 per cent.

This was essentially the most hotly contested mine within the public sale with Adani Enterprises, Bharat Aluminium Firm, DB Energy, Hindalco Industries, Jindal Energy, JSW Metal and Nuvoco Vistas Company additionally gunning for it. The winner, Sarda Power, a part of the Sarda Group, has a metal plant in Raipur, Chhattisgarh.


No end-use restrictions

Corporations competed on the portion of income they might share with the respective State authorities. There was no end-use restriction on the excavated coal. This implies the businesses can promote the coal within the open market or use it themselves. This was the primary time that coal mines have been auctioned within the nation with none end-use restrictions.

In all, the Ministry of Coal auctioned 19 mines over bidding rounds that started on November 2. The preliminary purpose was to bid out 38 coal mines with an anticipated annual income of ₹20,000 crore (at peak rated capability of mines) accruing to the States the place they’re situated. With the 19 mines being bid out, the Centre is now estimating an annual income of ₹7,000 crore to the States.

The second highest bid within the auctions was made by Boulder Stone Mart that quoted 54 per cent income share. It bagged the Gotitoria (East) and Gotitoria (West) coal mines in Madhya Pradesh.

The Urtan North coal mine, additionally in Madhya Pradesh, was awarded to JMS Mining at a last provide of 9.5 per cent income share. This was the bottom bid worth on the auctions.


50% success price

“The success price for this spherical of bids is 50 per cent since half the mines on provide discovered takers,” stated Coal Minister Pralhad Joshi. “The success price within the earlier rounds was round 30 per cent.” The bidding will result in an upfront fee of ₹1,048 crore for the 19 coal mines, he added.

Joshi additional stated the Coal Ministry is gearing up for the subsequent spherical of auctions. These mines that received a single bid this time may even be allowed to be placed on the block within the subsequent spherical, he added.

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