Commercial coal mining: Who are the winners on Day 1 of e-auction process?
Day 1 has seen aggressive bidding by various private players in the fray for the five mines that were on offer
Chakla coal mine in Latehar district of Jharkhand went to Hindalco Industries Ltd as it offered the highest 14.25 percent revenue sharing
New Delhi: The e-auction process for commercial coal mining, which opened on Monday, has seen aggressive bidding by various private players in the fray for the five mines that were on offer on Day 1. According to sources who spoke to PSU Watch on the condition of anonymity, Vedanta has emerged as the winner for the Radhikhapur West coal mine in Odisha, which has reserves of about 312 Million Tonnes (MT). Vedanta's bid was the highest among the competitors as it proposed 21 percent revenue sharing.
Chakla coal mine in Latehar district of Jharkhand went to Hindalco Industries Ltd as it offered the highest 14.25 percent revenue sharing. The Takli Jena Bellora North and Takli Jena Bellora South coal block in Maharashtra went to Aurobindo Realty and Infrastructure Pvt Ltd, respectively, while JMS Mining Private Ltd won the Urtan block in Madhya Pradesh, the sources said. The Marki Mangli II coal mine in Maharashtra was secured by Yazdani International, they added.
Next round of e-auction to take place on Nov 3
The Ministry of Coal will hold the next round of e-auction for coal mines on November 3. The coal mines on offer include Bandha and Dhirauli coal blocks in Singrauli district of Madhya Pradesh (MP), Sahapur (West) coal block in Umaria and Shahdol district of MP and Brahmadiha coal block in Giridih district of Jharkhand. Like Monday, the bidding process would open at 11 am and close at 1 pm.
The backdrop
The Coal Ministry, in association with FICCI, launched the process for auction of these coal mines on June 18. The decision of opening up the coal sector for commercial mining was part of a series of announcements made by Finance Minister Nirmala Sitharaman under the Aatmanirbhar Bharat Abhiyan. The Centre amended the Coal Mines (Special Provisions) Act, 2015, in May to simplify the auction process and attract investors to the sector. The amendment removed the requirement for miners to use coal only for captive purposes and allowed commercial mining by private players. The step is aimed at raising the domestic production of coal in order to cut India's dependence on imports.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)
