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Coal mine auction: Aurobindo Reality and Infra wins block in Jharkhand

Companies like Adani Power Resources Ltd and Welspun Steel Ltd were also vying for the block

Topics
Commercial coal mining | coal mine auction | Jharkhand

Press Trust of India  |  New Delhi 

coal, mining
The e-auction witnessed strong competition among the bidders with both the mines attracting good premiums over the floor price

On the fifth day of commercial on Friday, Aurobindo Reality and Infrastructure Ltd won a block in Jharkhand, while EMIL Mines and Mineral Resources emerged as a winner for a mine in Odisha.

EMIL Mines and Mineral Resources made the final bid offer of 16.75 per cent revenue sharing for Radhikapur (East) block in Odisha, for which Adani Enterprises Ltd, Jindal Steel and Power Ltd (JSPL) and Aluminium Co Ltd (Nalco) were also in the race.

With regard to the Urma Paharitola coal block in Jharkhand, Aurobindo Reality and Infrastructure made the highest final offer of 26.50 per cent revenue sharing, the coal ministry said in a statement.

Companies like Adani Power Resources Ltd and Welspun Steel Ltd were also vying for the block.

The block, which has geological reserves of 579.30 million tonnes, will generate an annual revenue of Rs 1,415.85 crore, the ministry said.

This is the second block won by Aurobindo Reality and Infrastructure in this auction.

On the first day of auction, the company had won the Takli-Jena-Bellora (North and South) block in Maharashtra.

"Two coal mines (one in Odisha and one in Jharkhand) were put up for auction on Day 5 of commercial coal mine auction," the ministry statement said.

The total geological reserves of the mines put up for auction are 755.63 million tonnes with a cumulative peak rate capacity of 15 million tonnes per annum.

The e-auction witnessed strong competition among the bidders with both the mines attracting good premiums over the floor price, the ministry said.

Including Friday's two blocks, the government has so far auctioned 17 mines for commercial mining.

Some of the corporate biggies that have bagged blocks so far are Vedanta, Hindalco Industries, and Jindal Power.

Two more blocks -- Gondulpara and Gare Palma IV/7 -- are yet to be auctioned.

In June, Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining, a move that opened the coal sector to private players, and termed it a major step in the direction of India achieving self-reliance.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, November 06 2020. 18:07 IST
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