NEW DELHI | March 04, 2015: Adani Power has won the Jitpur coal block in Jharkhand while Usha Martin bagged Brinda and Sasoi blocks in the same state in the second phase of coal mine auctions that began on Wednesday.
Adani Power will pay Rs 302 per tonne of coal extracted from the Jitpur mine to the government and agreed to forego the mining cost, which is about Rs 700 per tonne.
It outbid Jaiprakash Associates, Adhunik Power and Jindal Steel & Power, which previously owned the mine earmarked for the power sector. The block, which has extractible coal reserves of about 65 million tonnes, has a capacity to produce 2.5 mt a year.
Usha Martin bagged Brinda and Sasoi, which were clubbed as one for better valuation, at a price of Rs 1,804 per tonne. The blocks have total 24 mt of extractable reserves with annual capacity to produce 0.68 mt of coal. JSW Steel bagged the Moitra coal block in Jharkhand for Rs 1,512 per tonne. The block with 215 million tonnes of reserves has a capacity to produce one million tonnes of coal a year. The block was previously owned by Jayswal Neco.
The bidding in the second phase has not been as aggressive as in the first phase, when the government invited bids for 19 operational mines.
The mines in offer in this phase are non-operational but soon-to-be producing coal blocks. On Thursday, Mandakini mine in Odisha and Meral coal block in Jharkhand will be auctioned. The bidding will go on till March 8 for 11 coal mines, for which about 45 firms including Jindal Steel & Power, Adani Power, JSW Energy, GMR Energy, Hindalco Industries and Jaiprakash Associates are technically qualified
(Source: http://economictimes.indiatimes.com/)