BS Ispat has won the first block on Day 3 of coal auctions. The company's bid for Rs 918/tonne emerged as the highest bid for the Marki Mangli III block in Maharashtra.
The block reserved for the non-power sector has 4.20 million tonne of mineable reserves and BS Ispat's bid beat JSW Cement, Sunflag Iron and Steel and Topworth Urja and Metals. The previous owner of the block was Topworth Urja and Metals.
Day three of coal block auctions has three blocks on offer: Trans Damodar for the power sector which is located in West Bengal, Mandla North in Chhattisgarh and Marki Mangli III in Maharashtra which are for the non-power sectors.
Bidders for the Trans Damodar block which has 48.40 million tonne of mineable reserves are yesterday's winner CESC, Essar Power, GMR Chhattisgarh, JSW Energy, Lalitpur Power Generation Company Ltd, Durgapur Projects Ltd and Water Hyacinth Commosale Pvt Ltd. The block was previously owned by West Bengal Mineral Development Corporation. At 1.30 PM IST, the block is being bid at Rs 432 per tonne in reverse bidding. For the power sector, a reverse bidding mechanism is followed where the lowest bidder wins.
Mandla North has 143 million tonne of mineable reserves and the bidders are Bharat Aluminium Company Ltd (BALCO), Hindalco, UltraTech, Hindustan Zinc and Jaiprakash Associates. The highest bidder will win the block and at 1.30 PM IST, the block was being bid at Rs 1,573 per tonne.
On Sunday, Aditya Birla Group’s Hindalco Ltd won the first coal block on day two of the auctions after it emerged as the highest bidder for the Kathautia block in Jharkhand with a bid of Rs 2,860 per tonne.
“This would mean Rs 228 crore per annum in revenues for Jharkhand and Rs 6,800 crore for the mine life which is 30 years,” Coal Secretary, Anil Swarup tweeted on Sunday.
Hindalco’s bid beat others Monnet Ispat and Energy Ltd, Rungta Mines, SS Natural Resources and another Aditya Birla Group company UltraTech Cement.
On day two of the coal block auctions two more blocks were on offer. These were Belagaon in Maharashtra and Sarisatolli in West Bengal.
Belagaon was won by Sunflag Iron and Steel, who were the previous owners of the block. Sunflag's winning bid was for Rs 1,785 per tonne. It beat others like BALCO, Anil Ambani Group's Reliance Cement and Topworth Urja and Metals.
Sarisatolli which was reserved for the power sector was won by CESC Ltd with a winning bid of Rs 470 per tonne. The bid beat others like Adani Power, GMR Chhattisgarh Energy, Haldia Energy Ltd and Sheesham Commercial.
Anil Ambani Group's Reliance Cement and GMR Group won the two blocks on offer on the first day of coal auctions.