Coal Auction: Government mops up Rs. 83,662 crore

India Infoline News Service | Mumbai |

Earlier in the day, UltraTech Cement won the auction conducted for the Coal Block at Bicharpur, situated in Madhya Pradesh.

Coal Secretary Anil Swarup, in a press briefing today said that second tranche of coal block auction will be start from Feb 25th and assured that the government will either auction or allocate 83 blocks by March 31, out of which 27 blocks are for unregulated sector.

As the coal block auctions entered its seventh day, the government has garnered Rs. 83,662 crore via e-auction. Several states are likely to gain monetary benefits due to the coal auctions initiated by the government.

Elaborating on those figures, Swarup said that states will be able to collect royalty of Rs.12,801 Crore over Blocks' lives. Moreover, states like Jharkhand and Chattisgarh stand to gain Rs.14,498 Crore and Rs.26425 Crore respectively via Coal Block auctions.

For the future plan, the coal secretary said that the government is committed to increasing the coal production in the country and all the coal blocks are likely to be auctioned by March 2016. He added that the

Earlier in the day, UltraTech Cement won the auction conducted for the Coal Block at Bicharpur, situated in Madhya Pradesh. Its bid of Rs.3,003/- per MT was the highest. The commercial production from the block will start in FY18.

However, for JSPL it was a day of disappointment as it did not qualify as a bidder for Gare Palma IV/1. JSPL MD and CEO Ravi Uppal said the company was not comfortable with the prices that were being quoted for the mine in question. “We have known that mine intimately as we were operating it for 12 to 14 years. We quoted a price that we were comfortable with. But it did not qualify.” The minimum floor price for block 1 had been set at Rs 1,561 per tonne. The block previously supplied coal to JSPL’s Raigarh steel project.

Jindal Steel and Power yesterday confirmed that they won back the Gare Palma IV/2 & IV/3 Blocks, for which the other buyers were Adani and GMR Energy. The current mining capacity of these coal blocks are estimated to be at 6 MT per annum. Aditya Birla owned Hindalco Industries have won the Gare Palma IV/5 mine in Chhattisgarh, beating companies like Ambuja Cements, Sesa Sterlite, and Balco, which makes it the second mine out of the 13 put on offer for the company. Gare Palma IV-5 mine has estimated extractable reserves of 42.43 MT.
 

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