New Delhi: Anil Ambani-led Reliance Cement and GMR Chattisgarh Energy Ltd won the two blocks on offer on the first day of coal auctions.
Reliance Cement won the first coal block as it emerged as the highest bidder for Sial-Ghogri Coal Block located at Parasea tehsil in Chhindwara district of Madhya Pradesh, which has 5.61 million tonne of reserves. Reliance Cement beat Hindustan Zinc (HZL) and OCL Iron & Steel to bag the coal mine.
Reliance Cement bid Rs 1,402 per tonne to get the mine. The block was allotted to Prism Cement earlier and is earmarked for the non-power sector. Coal and power minister Piyush Goyal told reporters that money will go to Madhya Pradesh Government.
GMR's subsidiary GMR Chhatisgarh Energy won the Talabira I block. The blocks reserved for the power sector where the lowest bidder is the winner and GMR's bid of Rs 478 per tonne was the winning bid. Talabira-I has 33.84 million tonne of mineable reserves and the company pipped qualified bidders such as Adani Power, Essar Power, GMR Chhattisgarh Energy, OPG Power Generation and Sesa Sterlite.
The government had put for sale 204 coal mine blocks, following Supreme Court decision to allocate of 204 mines in September. Reliance Cement, Hindustan Zinc Ltd (HZL) and OCL Iron & Steel were top contenders. The mine has total reserves of 29.38 million tonnes and extractable reserves of 5.69 million tonnes.
Government officials said the bidding revealed the profit margins of coal miners who earlier said the Rs 295 per tonne retrospective penalty imposed by the Supreme Court on September 24 would wipe out the industry.
Coal minister Piyush Goyal said the aggressive bidding would mean low power tariffs.
