Vedanta Group is looking at coal mines in India to complete its portfolio.
Anil Agarwal, Chairman of the $70-billion non-ferrous metals conglomerate, said: “Coal is one vertical we are looking at actively. We will participate in the prospective auction rounds by the Government, if the block interests us.”
On Tuesday, the Cabinet Committee on Economic Affairs (CCEA) approved the coal block auction policy for private companies based on competitive bidding.
The mines put on offer will be for the players from power, cement, and steel sectors for captive use.
Vedanta already has captive power plants here and has plans to produce 10,000 MW, of which about 6,500 MW is already commissioned and operative.
Sterlite Energy, a 100 per cent subsidiary of Sterlite Industries, operates a 2,400-MW thermal power plant at Jharsuguda, Odisha.
It is also setting up a 1,980-MW thermal power project at Talwandi Sabo in Punjab, with the first unit starting operations by the third quarter of fiscal 2014.
This is not the first time Agarwal has expressed interest in coal block auctions and bids for Ultra Mega Power Projects (UMPPs).
His company has also been looking at acquiring coal mines in other countries. Agarwal has been quoted as saying that the Group needed coal in its portfolio.
“When the Government auctions coal blocks we will participate in the bids,” he had said. Balco, in which Vedanta through its group company Sterlite has 51 per cent stake, has a coal block.
Blocks shortlisted
Subsequent to the Cabinet decision, the Coal Ministry has decided to put four to six coal mines under the hammer by January 2014.
The names of four blocks meant for power sector doing the rounds are Brahmbil, Phuljhari (East), Phuljhari (West) and Kordabehal have been shortlisted to be put under auctioning for the power sector.
These mines are located in the Talcher coalfields in Odisha. All these blocks are explored and have estimates reserves of more than 500 million tonnes each.
In addition, the Ministry is working on identifying one or two smaller blocks that may be offered for cement and steel companies, the official added.