By Our Correspondent
NEW DELHI/BHUBANESWAR: First day of auction of coal mines for sale of coal saw strong and healthy competition among the bidders. Ministry of Coal had launched the auction of coal mines for commercial mining on June 18, 2020 pursuant to a two stage forward auction process (comprising of Initial Offer and Final Offer), wherein the bidders have to bid for the percentage revenue share over the reserve price.
The blocks put on auction by Ministry of Coal generated wide interest from bidders who had submitted their bids for various blocks on offer.The technical bids submitted were evaluated and the list of Technically Qualified Bidders was declared.Pursuant to this, Ministry of Coal has commenced the electronic auction of the coal mines for commercial purpose today at 11:00 AM.
The Day 1 of e-auction has witnessed strong competition, with auction of some of the mines going on for more than3-4 hours.In all the mines auctioned, the final offer received is above 10% signalling strong demand of coal mines in the market.
The auction of coal blocks for commercial mining which kickstarted saw Vedanta bidding the highest for Radhikapur(West) block in Odisha with 21% revnue share, while Hindalco bid the most for a block in Jharkhand. Vedanta made highest bid for Radhikapur West mine at 21 per cent revenue sharing, the coal ministry said in a statement.
Hindalco Industries bid the highest for Chakla coal mine in Jharkhand at 14.25 percent revenue sharing, it added. With regard to MarkiMangli II mine in Maharashtra, Yazdani International big the highest at 30.75 per cent revenue sharing. JMS Mining Pvt Ltd bid the highest for Urtan mine in Madhya Pradesh at 10.50 per cent revenue sharing, it said.
For Takli Jena Bellora North and Takli Jena Bellora South block in Maharashtra, Aurobindo Realty and Infrastructure Ltd made the highest bid of 30.75 per cent revenue sharing. All the five blocks will generate an annual revenue of Rs 1,556.68 crore for the states, the ministry said.
The blocks put on auction by the ministry generated wide interest from bidders who had submitted their bids for various blocks on offer. “The technical bids submitted were evaluated and the list of technically qualified bidders was declared. Pursuant to this, Ministry of Coal has commenced the electronic auction of the coal mines for commercial purpose today at 11:00 AM,” it said. The first day auction witnessed strong competition, with auction of some of the mines going on for more than three to four hours.
“In all the mines auctioned, the final offer received is above 10 per cent signalling strong demand of coal mines in the market,” it noted. Hindalco Industries, Adani Enterprises and Agarwal Mining were also in the race for the Chakla coal block. In case of Radhikapur (West) coal block, besides Vedanta, Jindal Steel and Power Ltd and two other firms had put in bids.
