» Business » Hindalco, Balco bags coal mines in Chhattisgarh

Hindalco, Balco bags coal mines in Chhattisgarh

Source: PTI
Last updated on: February 21, 2015 17:15 IST
Get Rediff News in your Inbox:

Bharat Aluminium Company (Balco) bagged one more coal block on the eighth day of the auction, taking the total number of mines sold so far through the ongoing auction to 18 that will generate an estimated over Rs 1 lakh crore for respective states.

Late last night, Hindalco Industries had bagged Gare Palma IV/4 mine in Chhattisgarh. The Aditya Birla Group company has bagged three coal blocks -- two in Chhattisgarh and one in Jharkhand so far.

Of the 19 blocks put on sale in the first tranche, 18 have been sold in eight days. The remaining one -- Gare Palma IV-7 mine in Chhattisgarh -- is the most sought after block as 12 bids have technically qualified for this non-power sector mine.

"Gare Palma IV-1 mine closed at Rs 1,585 (per tonne) and the winner is Balco," a coal ministry official said. Earlier, Balco had bagged Chotia mine in the same state.

Gare Palma IV/1 in Chhattisgarh has an extractable reserves of 49.57 MT. This is expected to generate an estimated Rs 7,856 crore for the state.

"Hindalco is the highest bidder at Rs 3,001 (per tonne) for Gare Palma 4/4," Coal Secretary Anil Swarup tweeted.

This will yield around estimated Rs 3,691 crore. After sale of 16 blocks, Coal Secretary Anil Swarup on Friday said: "The e-auction amount is Rs 83,662 crore. But these blocks will also entail an income to the states by way of royalty which comes to Rs 12,801 crore."

With two more mine being sold, the figure has crossed Rs 1 lakh crore mark.

The companies that have bagged 18 blocks include Reliance Cement, GMR Chhattisgarh, Hindalco, Sunflag Iron and Steel, Jaiprakash Associates, Jaiprakash Power Ventures, OCL Iron and Steel, Bharat Aluminium, Essar Power MP, Jindal Power and UltraTech Cement.

Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19.

Gare Palma IV/4 mine in Chhattisgarh was the third block bagged in the ongoing auction by the Aditya Birla Group firm last night, sources said. The bidding for the mine continued for more than 12 hours.

The Gare Palma IV/4 mine has extractable reserves of 12.30 million tonnes (MT).

Hindalco emerged as the successful bidder among companies like ACC, Balco, Godawari Power and Ispat, Jayaswal Neco Industries, Rungta Mines and SKS Ispat and Power which were vying for it.

The block was previously held by Jayaswal Neco Ltd. Besides, reverse auction for the power sector will result in benefits to the tune of Rs 37,050 crore to end-users by way of a cut in tariff, Coal Secretary Anil Swarup had said on Friday.

Tomorrow is the last day for the auction of mines in the first tranche. Gare Palma IV-7 mine in Chhattisgarh earmarked for the non-power sector is the most sought after mine in the current lot of mines put on auction in the first tranche.

The coal ministry had earlier shortlisted 12 technically qualified bidders for the mine. The bidders include Balco, Hindalco, JSPL, Jaiprakash Associates, Monnet Ispat & Energy Ltd and Rungta Mines.

The auction of second lot of 21 mines will start from February 25. 

Get Rediff News in your Inbox:
Source: PTI© Copyright 2022 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Moneywiz Live!