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Birla, Adani And Sarda Energy Win Coal Blocks On Auction Day 2

Coal ministry said the auction witnessed strong competition among the bidders with all mines attracting good premiums.

Workers carry a bowl of coal at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Workers carry a bowl of coal at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

The second day of auction of coal blocks for commercial mining on Tuesday saw Sarda Energy & Minerals Ltd. bagging the Sahapur West mine in Madhya Pradesh, while the Andhra Pradesh Mineral Development Corporation made the highest bid for Brahmadiha mine in Jharkhand.

EMIL Mines and Minerals Resources, an Aditya Birla Group company, won the Bandha block in Madhya Pradesh for which Adani Enterprises and Aurobindo Realty and Infrastructure also put in bids.

Stratatech Mineral Resources, owned by the Adani Group, made the highest bid for Dhirauli block in Madhya Pradesh at 12.50% revenue sharing, the coal ministry said in a statement.

Hindalco Industries was also vying for the Dhirauli block.

Besides Sarda Energy and Minerals, Chowgule and Company, Cuprum Bagrodia Ltd and JMS Mining were vying for the Sahapur West block.

For Brahmadiha coal block, companies like AlankarTradelinks and Bhupati Mining were also in the fray.

Andhra Pradesh Mineral Development Corporation made the highest bid at 41.75% revenue sharing for Brahmadiha block, while the final offer of Sarda Energy and Minerals Ltd for Sahapur West mine was at 26% revenue sharing.

The highest bid for Bandha block was at 21% revenue sharing.

The coal ministry said the auction witnessed strong competition amongst the bidders with all mines attracting good premiums over the reserve price.

The total geological reserves of the mines put up for auction are 1,085 million tonnes with a cumulative peak rated capacity of 9 million tonnes per annum.

Four "coal mines (three in Madhya Pradesh and one in Jharkhand) were put up for auction on day 2 of commercial coal mine auction," the ministry said.

The auction of coal blocks for commercial mining which kickstarted on Monday saw Vedanta bidding the highest for a mine in Odisha, while Hindalco bid the most for a block in Jharkhand.

Vedanta made highest bid for Radhikapur West mine at 21% revenue sharing.

Hindalco Industries bid the highest for Chakla coal mine in Jharkhand at 14.25% revenue sharing.

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With regard to MarkiMangli II mine in Maharashtra, Yazdani International big the highest at 30.75% revenue sharing.

JMS Mining Pvt. Co. bid the highest for Urtan mine in Madhya Pradesh at 10.50% revenue sharing.

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% revenue sharing.

In June, Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining, a move that opens the coal sector to private players, and termed it a major step in the direction of India achieving self-reliance.

The coal ministry had later revised the list of mines to be auctioned.