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.