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Amelia coal block in MP draws highest bid from a power genco

Finance Ministry hails coal auction as means to cheap power

BS Reporter  |  New Delhi 

The coal ministry received the highest bid till date for a block kept for the power sector on the fourth day of e-auction of these on Tuesday. Amelia North coal block in Madhya Pradesh received a final bid of Rs 712 a tonne from Jaiprakash Power Ventures, flagship company of the Jaypee Group.

The proceeds would go to the Madhya Pradesh state exchequer. Jaiprakash Power would have to pay Rs 166 crore annually. There is reverse bidding on blocks for the power sector.

Amelia North was one of the prime blocks with 26 million tonnes of extractable reserves, with 11 companies putting in technical bids. The other bidders were Essar Power, GMR Chhattisgarh Energy, RattanIndia Power, Reliance Geothermal Power, Jindal Power, Bharat Aluminium Company, KSK Mahanadi Power, Adani Power, GVK Power & Infrastructure, and JSW Energy. Finance Minister Arun Jaitley said the reverse auction process would ensure cheaper electricity to the common man against the practice of certain states giving power subsidy.

“In reverse bidding, the cost of power is going to be linked with the rate at which you get the fuel,” Jaitley said at RE-Invest 2015, India’s first global renewable energy conference, here on Tuesday.

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First Published: Wed, February 18 2015. 00:43 IST