Jindal Power achieves back Gare-Palma-IV / 1 coal mine on 3rd day of commercial coal mine auction

The Jindal Group appeared as the top bidder for Gare-Palma-IV / 1 coal mine

New Delhi (Natural Energy News): The Jindal Group has once again become the top bidder for the Gare-Palma-IV / 1 coal mine in Chhattisgarh. The mine was received by Jindal Power on Wednesday, the third day of the commercial coal mine auction.

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Under the commercial coal mining bidding round, companies competing on revenue share will acquire a coal mine in collaboration with the state government. There is no end-use restriction on coal mined from these mines. Five coal mines were auctioned on Monday (2 November), four coal mines were on Tuesday (3 November) and three coal mines on Wednesday (4 November). The remaining coal mines will be auctioned by 9 November 2020. In all, the Ministry of Coal intends to auction 19 mines for commercial coal mining.

The Jindal Group appeared as the top bidder for Gare-Palma-IV / 1 coal mine a year after Jindal Steel and Power Limited (JSPL) brought the biggest proposal in the November 2019 coal mines auction.

Those auctions were conducted with an end-use segment - extracted coal was to be used at a predefined source. The sale of coal in the open market was stopped at that auction.

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But despite the highest bid during the auction, the Center did not award the mine to JSPL, stating that the bid price was too low and eventually the coal mine moved back to Coal India.

Jindal Power beat Adani Enterprises and Hindalco Industries this time. The total annual capacity of the mine from the auction of this mine is 6 million tonnes per annum, this mine has geological reserves of 84.262 million tonnes and Chhattisgarh has an annual profit of .10 652.10 crores.

Highest bid: -

In another notable development on Wednesday, the Gotatoria (East) and Gotatoria (West) coal mines were received by the Boulder Stone Mart. These two mines were jointly auctioned and the relatively new company has offered 54 percent revenue sharing with the Madhya Pradesh government. This is the highest bid for any mine in the commercial coal mining auction round.

Related Article: 5 coal mines offered on first day of auction for commercial use

Boulder Stone Mart beat Andhra Pradesh Mineral Development Corporation, Bansal Construction Works, Dilip Buildcon, Inspire Construction & Coal, Mahaveer Clean Fuel Mining, ND Pharma and Net Energy. It was the most warming mine on Wednesday, despite having very little geological reserves at 7.452 million tonnes.

In December 2014, the Coal Ministry tried to bid jointly to the Gotatoria (East) and Gotatoria (West) coal mines. These mines were placed under the iron and steel, cement and captive power plant end-use category.

The Uratan North coal mine in Madhya Pradesh, JMS Mining was also awarded on the final proposal of 9.50 percent revenue share. This is the lowest bid price at which the auction of a mine has closed under the commercial mining regime. JMS Mining was contesting for the Uraton mine with Stratetech Mineral Resources (a wholly-owned subsidiary of Adani Enterprises).

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