Adani Enterprises inks pact with MAHAGENCO for operation of Gare Palma II coal block

• The Ministry of Coal, allocated Gare Palma Sector II coal mine to MAHAGENCO vide on August 31, 2015 under Coal Mines (Special Provisions) Act, 2015

• The contract period will be of 34 years, including mine development and final mine closure

New Delhi: Adani Enterprises has signed an agreement with Maharashtra State Power Generation Company (MAHAGENCO) for the development and operation of Gare Palma II coal mine in Chhattisgarh, the company said in a regulatory filing on Friday. "This is to inform that Adani Enterprises Limited alongwith its Wholly Owned Subsidiary company, Gare Palma II Collieries Private Limited ("GPIICPL") has signed Coal Mining Agreement ("CMA") with Maharashtra State Power Generation Company Limited ("MAHAGENCO") for development and operation of Gare Palma Sector II Coal Mine," it said.

Gare Palma II has peak rated capacity of 23.6 MTPA

The Ministry of Coal, allocated Gare Palma Sector II coal mine to MAHAGENCO vide on August 31, 2015 under Coal Mines (Special Provisions) Act, 2015. The coal block is located at Raigarh district in Chhattisgarh. The coal block was allotted for development, operation and captive consumption of coal to its end-use thermal power plants located at Koradi, Chandrapur 8-Parli.
As per the approved mining plan, the peak rated capacity of Gare Palma II coal mine is 23.6 MTPA, with total mineable reserve of 553.177 MT for opencast mine.

Contract period will be of 34 years: Adani Enterprises

"MAHAGENCO had floated a tender for selection of Mine Developer and Operator for the development and operation of Gare Palma II coal mine on March 31, 2016. After reverse auction, Adani Enterprises Limited ("AEL" or "the Company") emerged as L-1 bidder. MAHGENCO issued Letter of Acceptance (LOA) to the Company. As per the tender provision, the Company has formed WOS (SPV company), namely GPIICPL and the Coal Mining Agreement (CMA) has been executed between MAHAGENCO, AEL 8- GPIICPL," said Adani Enterprises.  

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The contract period will be of 34 years, including mine development and final mine closure. By this development, the contractual capacity of AEL as an MOO has now become 104.20 MTPA. 

In the auction for commercial coal mining in November 2020, Adani Enterprises had secured a coal block in Jharkhand's Hazaribagh district — Gondulpara coal mine. The coal block has a geological reserve of 176.33 million tonnes (MT) and will generate an annual revenue of Rs 520.92 crore.

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