Hindalco clinches J’khand’s Dumri coal mine, Jindal Power bags Chh’garh’s Tara

The Union Government’s kitty swelled by Rs 12,591 crore with the sale of three more mines to Hindalco, Jindal Power and Indrajit Power on Saturday, the third day of the second tranche of coal block auctions. Amid stiff competition from bidders, Hindalco Industries won the Dumri mine in Jharkhand, Jindal Power grabbed the Tara block of Chhattisgarh and Indrajit Power clinched the Nerad Malegaon block in Maharashtra.

“Indrajit Power bids the highest for Nerad Malegaon for Rs 660 (a tonne). Hindalco highest bidder at Rs 2,127 (a tonne) for Dumri and Jindal Power at Rs 126 (a tonne) for Tara coal block,” Coal Secretary Anil Swarup tweeted. These three mines would contribute a cumulative Rs 12,591 crore to the state exchequer. 

With the three blocks, the government stands to garner over Rs 1.43 lakh core, including over Rs 1 lakh crore from the auction of 19 blocks in the first tranche. Three more coal blocks will be put up for auction when the bidding starts on Sunday.

The amount of proceeds has been calculated based on extractable reserves and highest bid price. Hindalco Industries has bagged Dumri mine in Jharkhand for an estimated Rs 9,809 crore, while Jindal Power won Tara block in Chhattisgarh for Rs 2,103 crore. Indrajit Power bagged Nerad Malegaon block for Rs 679 crore. 

In the second leg of the coal block auction, government has put up 15 blocks for sale, which are under the ‘ready-for- production’ category.