Commercial coal mining: Adani wins largest coal mine on Day 1 with lowest revenue share

New Delhi: Mahan Energen Limited (MEL), a subsidiary of Adani Power Limited (APL), bagged the largest coal mine out of the eight coal mines for which the government conducted e-auction for commercial coal mining on Tuesday. The company bagged Mara II Mahan coal mine in Madhya Pradesh with a geological reserve of 955.96 Million Tonnes (MT) at 6 percent revenue share. JK Cement, JMS Mining Private Limited and Nilkanth Infra Mining Limited were among the other companies that bagged eight coal mines in the latest round of commercial coal mine auction. The Ministry of Coal had launched the auctions of coal mines for commercial mining under the ninth round on December 20, 2023 and eighth round on November 15, 2023. After an evaluation of bids, forward e-auctions for thirteen mines were commenced from Tuesday.

PSU Watch is now on Whatsapp Channels. Click here to join

“On the first day, eight coal mines were put up for auction of which five coal mines were CMSP coal mines and three coal mines were MMDR coal mines. Four of the eight mines are fully explored while the other four mines are partially explored coal mines. The total geological reserves for these 8 coal mines are 1,721.44 Million Tonnes. The cumulative PRC for these coal mines is 4.20 MTPA,” said the Ministry of Coal on Tuesday.

“These coal mines upon operationalisation will generate Annual Revenue of ~Rs. 652 crores calculated at PRC of these coal mines (excluding Partially Explored coal mines). These mines will attract capital investment of ~Rs. 630 crores and will provide employment to ~5,678 people,” the ministry added.

Lowest revenue share quoted for Mara II Mahan coal mine by Adani subsidiary

All the eight coal mines for which auction was conducted on Tuesday had a reserve price of 4 percent. The lowest revenue share was quoted for the Mara II Mahan coal mine in MP by Adani subsidiary, Mahan Energen, at 6 percent followed by JK Cement Ltd at 6.50 percent for Mahan coal mine (107.41 MT) in MP, Sunflag Iron and Steel Company Limited at 7 percent for Thesgora-B/Rudrapuri coal mine in MP.

JMS Mining Private Limited bagged the Binodpur Bhabhaniganj coal mine (198.57 MT) in West Bengal at 18.25 percent revenue share. Rungta Sons Private Limited secured South of Damuda coal mine (291.71 MT) in Jharkhand at 21.25 percent revenue share. Nilkanth Infra Mining Limited won Marki-Zari-Zamani-Adkoli coal mine (21.76 MT) in Maharashtra at 22 percent. Bull Mining Private Limited won Duni Central coal mine (45 MT) in Jharkhand at 40 percent revenue share. SM Steels and Powver Limited bagged the Dumri coal mine (55.99 MT) in Jharkhand at 41 percent revenue share.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)