Govt raises Rs 4364 cr from auction of 3 coalmines

The third phase of coal block auctions culminated on Thursday with Jaypee Cement winning Maharashtra’s Majra mine, the only mine to be bid out on the last day. Jaypee Cement Corporation had won the Mandla South coal mine in the second round of auctions while its parent Jaiprakash Associates Ltd won the Mandla North coal mine.

Only three blocks could be auctioned even though the government had identified 10 for this round.

The government deferred the auction of Chitarpur coal mine in Jharkhand because of a court case, which was scheduled to start on Wednesday. The other coal block – Parbatpur Central coal mine in Jharkhand – was withdrawn from the process on representation that it contains gas.

The mines up for auction are all of “captive” category, for use by the unregulated sector to manufacture products like cement, aluminium, steel and iron. As the bids began this morning, he had tweeted that “applicable floor price at Rs 800.”The Majra block has extractable reserve of nearly 15 million tonne and was earlier with Gondwana Ispat”.

In a notice to the bidders of Parbatpur Central and Chitarpur mines, the Coal Ministry said yesterday, “bidders may kindly note that the Parbatpur Central Coal Mine is withdrawn from the process of auction”.

The date of e-auction of Chitarpur block, the notice had said, will be intimated later.

The government has mobilised a total of Rs 4,364 crore from the auction of three coal blocks in the third phase of auction that came to a close on Thursday.

“Bhaskarpara closed at Rs.755”.

The group’s arm Topworth Urja & Metals also emerged as the highest bidder for Marki Mangli-I mine in Maharashtra. Bhaskarpara’s extractable reserves are 24.06 MT.

While four blocks were withdrawn due to lack of bids received for them at the technical qualification stage, the auction for the Jamkhani coal mine in Odisha had to be postponed due to an ongoing litigation.

The auction of 10 mines will take place in this round, including six offered earlier but which failed to find takers.