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Coal mine auctions: JSW Steel, Adani, Usha Martin bag blocks

Coal mine auctions: JSW Steel, Adani, Usha Martin bag blocks
Adani Power bagged Jitpur mine, located in Godda district has extractable reserves of 65.535 million tonnes (MT), according to an official. It beat the likes of Adhunik Power and Natural Resources, Jaiprakash Power Ventures and Jindal Power. Jitpur mine, earlier allocated to Jindal Steel & Power Ltd (JSPL), was earmarked for the power sector. “Jitpur closes at (Rs) 302 (per tonne),” Coal Secretary Anil Swarup tweeted.

Usha Martin won Brinda and Sisai mines, earmarked for non-power sector, at a bid of Rs 1,804 tonne. “Usha Martin is the highest bidder at (Rs) 1804 for Brinda and Sasai coal block,” Coal Secretary Anil Swarup tweeted.

Usha Martin participated in e-auction of Brinda and Sasai coal blocks for meeting captive requirements of fuel for steel making and power generation, the company said in a BSE filing. Bid opened at Rs 1802 and soon closed at Rs 1804. Both mines fall under schedule III category for which certain regulatory clearances are yet to be obtained.

Brinda and Sasai coal mines have total extractable reserves of 25.40 million tonnes (MT). Brinda and Sasai are two coal mines but government came out with one bid for both. Usha Martin beat BALCO, Sesa Sterlite and Easternrange Coal Mining among others to bag the two mines in Chatra of Jharkhand. The blocks were earlier allotted to Abhijeet Infrastructure Pvt Ltd.

JSW Steel bagged Moitra mine, according to an official . “Moitra coal block closes at Rs 1512,” Swarup tweeted. Others in race for Moitra mine, earmarked for non power sector, were Jayaswal Neco Industries Ltd, JSW Steel and SAIL.

Moitra mine, situated in Hazaribagh district, has 29.91 MT extractable reserves. It was earlier alloted to Jayaswal Neco. There are two methods of bidding for auction of coal blocks--forward bidding (for unregulated sectors like steel, cement and captive power) and reverse bidding (for specified end use for power generation).

Mandakini mine (for power sector) in Odisha and Meral mine (for non-power sector) in Jharkhand are on auction on Thursday. The auction proceeds from first lot of 19 mines is over Rs 1 trillion. The auction follows the Supreme Court’s decision last year to cancel allocation of 204 coal mines.

The companies in the race for Mandakini mine are Adani Power Ltd, Adani Power Maharashtra Ltd, GMR Mining and Energy Pvt Ltd, Jindal Power Ltd, Mandakini Exploration and Mining Ltd and Wigeon Commotrade Pvt Ltd. The firms vying for Meral mine are Easternrange Coal Mining Pvt, Trimula Industries Ltd and Usha Martin Ltd.

Other mines on auction in the second lot include Tara in Chhattisgarh; Nerad Malegaon in Maharashtra; Dumri in Jharkhand; Ganeshpur in Jharkhand; Mandla South in Madhya Pradesh; Gare-Palma Sector-IV/8 in Chhattisgarh; Utkal C in Odisha; Lohari in Jharkhand and Jamkhani in Odisha.

LS approves Coal Mines Bill to replace Ordinance

The Lok Sabha on Wednesday passed the Coal Mines bill to allow e-auction of coal blocks after the Supreme Court cancelled their allocation leading to uncertainty in the coal sector, amid opposition by Left and some other parties. The Coal Mines (Special Provisions) Bill, 2015, would replace two ordinances issued by the government — the first on October 21 last year and the other in December, after the apex court cancelled the allocation of 204 blocks. Replying to a debate on the bill, Coal and Power Minister Piyush Goyal said its passage would ensure a “transparent & honest” coal block auctioning process. He warned that if the Bill is not passed, there could be a crisis in the coal sector with the closure of these mines.
PTI

PTI

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