The financial bids round under the second tranche of the commercial coal mining auctions came to life in the later stages today after a dismal start . Coal blocks with lesser reserves continued to excite buyers as these witnessed intense bidding on the final day.
In the battle of end-users for the Bhaskarpara coal block, Prakash Industries came out on top offering a closing bid of 55.75% against the floor price of 34.25%. The block was heavily contested among the end-users for which Godavari Power and Sunflag were also in contention.
Another block having comparatively lower coal reserves in the lot, Burakhap, fetched a remarkable 37.5% premium over the floor price. Notably, a total of five bidders were in the fray amongst which Shri Satya Mines emerged as the winner by quoting a final price of 54.5%.
In contrast, the Khargaon coal block, with 250 mn t rated capacity, was sold at a nominal bid price of 6% against the floor price of 5.5%. Chhattisgarh Natural Resources, a subsidiary of the Adani Group of companies, won the Khargaon block, thus securing its second coal block in the current round of sales.
At the end of the third day of the auctions, sales of eight blocks, which had entered the financial bids round, concluded. These blocks garnered an average bid price of 30.06% against the assessed floor price of 12.34%.
Nevertheless, the second tranche of the auctions is far from over, as the Nominated Authority is expected to initiate re-attempt for sales of the remaining 11 coal blocks which had initially failed to qualify for the final round after securing a single bid in the technical round.
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