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Vedanta, Hindalco among winners on day-1 of commercial coal auctions

Vedanta, Hindalco among winners on day-1 of commercial coal auctionsNew Delhi:VedantaLtd emerged highest bidder for acoalblock in Odisha offering a premium of 21% whileHindalcoIndustries placed a winning bid for another coal block in Jharkhand offering 14.25% premium in India’s pilot auction of mines for commercial purposes. The country’s first commercialcoal auctionsbegan on Monday with five blocks.

Vedanta placed the highest bid for Radhikapur West coal mine with 312 million tonnes of geological reserves, pipping EMIL Mines and Minerals Resources Ltd and Jindal Steel and Power Ltd.

Hindalco Industries is close to winning the Chakla mine in Jharkhand with 76.05 million tonnes. Adani Enterprises, Agarwal Mining and Stratatech Mineral Resources Pvt Ltd were the other bidders for the block.

“The bids are competitive and reasonable. They have been hotly contested. The states will benefit in terms of revenue generation as well as employment creation,” coal secretary Anil Jain told ET.

The day 1 of e-auction has witnessed strong competition, with auction of some of the mines going on for more than 3-4 hours. In all the mines auctioned, the final offer received is above 10% signalling strong demand for coal mines in the market, an official statement said.

The Takli Jena Bellora North and Takli Jena Bellora South coal mine in Maharashtra with 117.26 million tonne reserves and the Marki Mangli II mine in Maharashtra received the highest premium of 30.75% each among blocks auctioned on Monday. Yazdani International Pvt Ltd placed the winning bid for Marki Mangli II while Aurobindo Realty and Infrastructure emerged highest bidder for the other block in Maharashtra.

JMS Mining Pvt Ltd has placed the highest bid for the Urtan mine in Madhya Pradesh with 55.391 million tonne reserves at 10.50%.

The total annual revenue estimated to be generated to states from the coal blocks is Rs 1557 crore, the statement said.

Total 19 coal mines will be auctioned by the coal ministry between Monday and November 9. The bids will be sent by the Nominated Authority for final approval to the coal ministry.

The auction process of 38 coal mines for sale of coal was launched by the coal ministry on June 18, 2020. A total of 76 bids were received for 23 coal mines. But the required two or more bids were received for only 19 coal mines.

The Cabinet Committee on Economic Affairs had on May 20 approved the methodology for auction of coal and lignite mines for sale on a revenue-sharing basis.

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