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Coal block auction: Hindalco bags Dumri mine, Jindal Power wins Tara block

Hindalco Industries won the Dumri mine in Jharkhand for an estimated Rs 9,809 crore, while Jindal Power bagged the Tara block in Chhattisgarh for Rs 2,103 crore.

twitter-logo PTI   New Delhi     Last Updated: March 7, 2015  | 15:24 IST
Hindalco, Jindal Power bag coal mines in auction
(Photo: Reuters)

Hindalco Industries and Jindal Power have bagged one mine each on the day 3 of the second phase of the coal block auctions.

Hindalco Industries won the Dumri mine in Jharkhand for an estimated Rs 9,809 crore, while Jindal Power bagged the Tara block in Chhattisgarh for Rs 2,103 crore.

Bidding for Nerad Malegaon in Maharashtra is still on.

"Hindalco highest bidder at Rs 2,127 (per tonne) for Dumri and Jindal Power at Rs 126 (a tonne) for Tara coal block," tweeted Coal Secretary Anil Swarup.

"Auction for Tara block, which is for power sector, began at 11 am with rupee one bid. For Dumri, the auction began at Rs 2,125 per tonne while for Nerad Malegaon it started at Rs 413 per tonne," an official told PTI.

There were eight players vying to grab the Dumri coal block in Hazaribag district of Jharkhand with extractable reserves of 46.13 MT.

The companies in the race to grab this block were - Balco, Easternrange Coal Mining, Hindalco Industries, Lakeview Dealtrade, Rungta Mines, Natural Resources, Sesa Sterlite and Usha Martin.

The mine was previously allotted to Nilachal Iron & Power and has preliminary forest clearance and awaits forestry clearance for mining lease.

A maximum of nine companies - Adani Power, Adani Power Rajasthan, Adani Power Maharashtra, Athena Chhattisgarh Power, Jindal Power, JSW Energy, KSK Mahanadi Power Company, LANCO Amarkantak Power and RattanIndia Nasik Power - were vying for Tara block in Surguja district of Chhattisgarh.

The block with extractable reserves of 166.92 million tonnes (MT) was previously allotted to Chhattisgarh Mineral Development Corporation.

The third mine put on auction on Saturday - Nerad Malegaon in Yavatmal district in Maharastra has extractable reserves of 10.29 MT.

The block was previously allotted to M/s Gupta Metallics & Power and M/s Gupta Coalfields & Washeries.

Among the players in race for the Nerad Malegaon are - Godawari Power and Ispat, Grace Industries, Indrajit Power, OCL Iron and Steel and Sunflag Iron and Steel Company.

In fierce bidding that lasted over eight hours, Mandakini Exploration and Mining on March 5 bagged Mandakini block in Odisha while the Meral mine in Jharkhand went to Trimula Industries, in the process fetching an estimated Rs 19,633 crore for the states.

Under the second leg of auction, the government has put 15 coal blocks for grab, which are under ready-for-production category.

The auction proceeds from first lot of 19 mines is over Rs one lakh crore.

The government, which was to begin the second phase of coal block auction in February had to put it off to March 4 because of litigation issues.

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