Monnet Ispat & Energy wins Gare Palma IV-7 mine.

Monnet Ispat & Energy recently bagged one coal block in Chhattisgarh on the last day of the auction, bringing down the curtains on the first phase of coal auctions that will fetch the states over Rs. 1 lakh crore.

'Monnet Ispat, highest bidder at Rs. 2,619 (per tonne) for Gare Palma IV/7 (coal mine),' Coal Secretary Anil Swarup tweeted.

In another tweet, he said, 'Coal block auction releases a value of more than Rs. 1.5 lakh crore. Includes the benefit of around Rs. 37,000 crore of tariff reduction.'

And further tweeted that 'Rs. 1.09 lakh crore of e-auction amount and Rs. 12,800 crore to go to states in the next 30 years.'

The government was successful in selling all the 19 mines in the first lot of auction which began on February 14.

Hindalco Industries has bagged the maximum number of mines in the first phase of auction, winning three that includes two in Chhattisgarh and one in Jharkhand.

In the entire auction, the lowest closing bid price was Rs 108 per tonne for the Gare Palma IV 2 & 3 coal blocks in Chhattisgarh won by Jindal Power Ltd., while the highest closing bid price was Rs. 3,502 per tonne for Gare Palma IV/5 coal mine in Chhattisgarh alloted to Hindalco Industries.

Gare Palma IV-7 mine in Chhattisgarh, earmarked for the non-power sector, was the most sought after one in the current lot put on auction in the first tranche.

The mine was earlier alloted to Raipur Alloys & Steel Ltd. (Now Sarda Energy and Mineral Ltd.).

The Coal Ministry had earlier shortlisted 12 technically qualified bidders for the mine.

Besides Monnet Ispat & Energy Ltd., other companies that were in the race for the coal blocks include Balco, Hindalco, JSPL and Jaiprakash Associates.

Gare Palma IV-7 mines has extractable reserves of 52.98 million tonnes (MT).

The second round of auction in which government has put on sale 21 mines will begin from February 25.


ET