Commercial coal mining: Adani Enterprises wins its first coal block on Day 6

On Day 6 of the e-auction process for commercial coal mining, Adani Enterprises secured its first coal block in Jharkhand
Commercial coal mining: Adani Enterprises wins its first coal block on Day 6
  • Vedanta Ltd, Aditya Birla Group company EMIL Mines and Minerals Resources Ltd, India Coke and Power Pvt Ltd were some of the other companies who were in the fray

  • Adani Enterprises made a final offer of 20.75 percent revenue sharing for the mine

New Delhi: On Day 6 of the e-auction process for commercial coal mining, Adani Enterprises secured its first coal block in Jharkhand on Saturday as it placed the winning bid for Gondulpara coal mine in Hazaribagh district. Vedanta Ltd, Aditya Birla Group company EMIL Mines and Minerals Resources Ltd, India Coke and Power Pvt Ltd were some of the other companies who were in the fray for the Gondulpara coal mine. Adani Enterprises made a final offer of 20.75 percent revenue sharing for the 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, said the Ministry of Coal in a statement. "The e-auction witnessed strong competition amongst the bidders with the mine attracting good premium over the floor price," it added.

Commercial coal mining: 18 mines have been bid out so far

The government has so far bid out 18 mines. Only Gare Palma IV/7 coal block in Chhattisgarh is supposed to be bid out and the auction is slated to take place on November 9. So far, the list of companies who have been awarded coal blocks under the commercial coal mining e-auction include, Adani Enterprises Ltd, Jindal Power Ltd, Vedanta Ltd, Hindalco Industries Ltd, JMS Mining Pvt Ltd, Aurobindo Realty and Infrastructure Pvt Ltd, Andhra Pradesh Mineral Development Corp. Ltd, Aditya Birla Group-owned EMIL Mines and Minerals Resources Ltd, Fairmine Carbons Pvt Ltd and Chowgule and Company Pvt Ltd, among others.

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.

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