Jindal Steel & Power emerges highest bidder for Gare Palma IV/1 coal block
The coal from the block will be used by the company for its Raigarh plant as well as for captive power plants
Jindal Steel & Power (JSPL) has emerged as the highest bidder for Gare Palma IV/1 coal block in Chhattisgarh with a bid price of Rs 230 per tonne, a premium of 53% over reserve price.
The bid price is about a fifth of Rs 1,585 per tonne for the same mine quoted by Bharat Aluminium Company in 2015 auctions which was rejected as low by the Coal Ministry.
The coal from the block will be used by the company for its Raigarh plant as well as for captive power plants which are near the mines.
Coal mines in the present tranche of auctions received a tepid response and the government had to annul auctions for 21 of the 27 mines on offer. Six mines are put on offer, of which auctions for two have been completed.
Apart from this, another mine Bikram, in Madhya Pradesh, which was auctioned on 1 November 2019, received the highest bid of Rs 154 per tonne from Birla Corporation against a reserve price of Rs 150 per tonne.
The Gare Palma IV/1 coal block was owned by the company before the Supreme Court in 2014 cancelled all captive mine allocations. However, later in the 2015 auctions, Bharat Aluminium Company emerged as the highest bidder, but the bid was not accepted by the Coal Ministry. The mine has been closed since deallocation.
In the first tranche of auction in 2015, the Coal Ministry had also rejected JSPL’s bids for Gare Palma IV/ 2 and 3 block and Tara block that received lower bids than for other blocks. The blocks were given to Coal India for operation and later the High Court upheld the decision.