Adani Enterprises Ltd submitted the winning bid for the Gondulpara coal mine in the Hazaribagh district of Jharkhand on the sixth day of commercial coal mine auctions, a government official said.
EMIL Mines and Minerals Resources Ltd from Aditya Birla Group, India Coke and Power Pvt Ltd and Vedanta Ltd were also competing for the block with a geological reserve of 176.33 million tonnes.
So far, 18 coal mines have been auctioned since the bidding began on Monday. The last day of the auction is expected to be Monday, while one more coal mine, Gare Palma IV / 7 in Chhattisgarh, is pending bidding.
Mines are awarded on the basis of a revenue share, while previous blocks were assigned to companies by paying fixed amounts per ton. As part of the two-stage auction process, a bidder must quote the percentage of revenue share over the reserve price. There will be no restrictions on the sale and use of coal from these mines. The winning bids for the 18 coal mines auctioned during the week have been received from companies such as 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, EMIL Mines and Minerals Resources Ltd, owned by Aditya Birla Group, Fairmine Carbons Pvt Ltd and Chowgule and Company Pvt Ltd, among others.
While a total of 38 coal mines were initially auctioned by the coal ministry, a total of 19 mines are being tendered under the 11th tranche of auction under the 2015 Coal Mines (Special Provisions) Law, located in Madhya Pradesh. Chhattisgarh, Jharkhand, Odisha and Maharashtra. Initially there were 76 offers from 42 companies for 23 coal mines, and the remaining 15 mines received no offers.
India’s coal needs are expected to rise to 1.123 million tonnes (mt) by 2023 from current levels of around 700 mt. The previous plan was to extract 1.5 billion tons of coal by 2020. Despite having the fourth largest coal reserves in the world, India imports about 235 million tons (mt) of coal, of which about 135 million can be obtained from national reserves.
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