New Delhi (Natural Energy News): India's first auction of coal mines for commercial sale began today (November 2, 2020) for five coal mines. Vedanta has today shared 21 percent of its revenue for a large coal mine, with a reserve of about 312 million tonnes in Radhikapur west of Odisha.
Hindalco bid the highest revenue share for the Chakla coal mine at 14.25 per cent, followed by JMS Mining bid for the urban coal mine and Aurobindo Realty today bid 30.76 per cent for the Takli (North and South) coal mine.
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For the marquee Mangli coal mine, Radhikapur West saw aggressive bids, for which Vedanta bid the highest 217 revenue partnerships. It was a big mine for the day's auction which was attended by Adani Group company, Chandipada Collieries, Aditya Birla Group Company EMIL and JSPL.
Finance Minister Nirmala Sitharaman announced in May that auctions of 50 coal mines had been announced under commercial coal auctions to make India a 'self-weighted' economy. This step was taken to curb coal imports and increase coal production and bring investment and generate employment.
Commercial mining regulations now allow private sector investment under a revenue-sharing model with entry barriers, net worth, and discounts on technical parameters. Under the revenue-sharing model, miners would have to share a percentage of revenue with states against an earlier regime as a per-tonne basis auction that was held regardless of the market value of coal.
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The government offered 38 coal mines for commercial coal auctions, but only 19 mines received interest from companies. Adani Group companies have bid for 12 coal blocks, followed by Aditya Birla Group companies in 8 coal mines, 4 bids of JSPL, 3 bids of Vedanta and 1 of JSW. The auction of 19 coal mines will end on 9 November and the successful announcement of the bidder will be made by the nominated authority by 11 November.
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