Aditya Birla Group company, Hindalco Industries has emerged as a winner of Gare Palma IV/5 coal block at the end of 5th day auction. While, it is a big setback for Monnet Ispat, the previous mine holder.
Gare Palma IV/5 coal block (Chhattisgarh),which was reserved for unregulated sector, is won by Hindalco Industries at highest bid of INR 3,502/MT till date. The company has defeated its competitor like Monnet Ispat, BALCO, Sesa Sterlite and Ambuja Cements.
Earlier, the ministry had allotted Gare Palma IV/5 to Monnet Ispat (approx 1.2 MnT annual use) for end-use of its Sponge iron plant based in Raipur, Chhattisgarh. Monnet Ispat, an erstwhile holder of Gare Palma IV/5 has lost the mine in this competitive bidding, which is a big setback for the company.
Currently, Monnet has no option to fulfill its requirement of 1.2 MnT coal, which was earlier extracted from Gare Palma IV/5. Therefore, as of now, the company has to purchase dry fuel from the open market.
On 16 Feb’15, the company has also received a notice by Coal Ministry as the block was illegally utilized for its Raigarh based plant.
On the other hand, Essar Power has won the Tokisud North (Jharkhand) coal black at INR 1,110/MT bid, was meant for the power sector.
Today, JSPL has again won the block Gare Palma IV/2 & 3 at INR 108/MT. As a result, shares of Jindal Steel & Power have risen by 17% to INR 182.
Till date, Coal Ministry has auctioned total 14 blocks, which include 6 reverse and 8 forward auctions which has received highest bid from Gare Palma IV/5 block, which was kept for Steel sector.
| Mine | Erstwhile Holder | Won | Win Price | Reserves | State | End Use Project |
| Talabira I | Hindalco Industries | GMR Chhattisgarh | 478 | 28.7 | Odisha | Power |
| Sarisatolli | CESC | CESC | 470 | – | West Bengal | Power |
| Kathautia | Usha Martin | Hindalco Industries Ltd | 2,860 | 26 | Jharkhand | Iron & Steel |
| Balgaon | Sunflag Iron Steel | Sunflag Iron and Steel | 1,785 | 14 | Maharashtra | Iron & Steel |
| Sial Ghoghri | Prism Cement | Reliance Cements | 1,402 | 29.4 | Madhya Pradesh | Cement |
| Trans Damodar | West Bengal Mineral Development Trading Corp | Durgapur Projects | 940 | 48 | West Bengal | Power |
| Marki Mangli III | Topworth Urja and Metals | BS Ispat | 918 | 4.2 | Maharashtra | Iron & Steel |
| Mandla North | Jaiprakash Associates | Jaiprakash Associates | 2,502 | 143 | Madhya Pradesh | Cement |
| Amelia (North) | Madhya Pradesh State Mining Corporation | Jaiprakash Power Ventures (Jaypee Group) | 712 | 26 | Madhya Pradesh | Power |
| Chotia | Prakash Industries | Bharat Aluminium Company (Vedanta Group) | 3,025 | 13.57 | Chhattisgarh | Sponge Iron |
| Ardhgram | Sova Ispat & Jai Balaji Industries | OCL Iron & Steel | 2,302 | 19.29 | West Bengal | Iron & Steel |
| Gare Palma IV/5 | Monet Ispat & Energy | Hindalco Industries Ltd | 3,502 | 42.4 | Chhattisgarh | Iron & Steel |
| Tokisud North | GVK Power (Govindwal Sahib) | Essar Power MP Ltd | 1,110 | 51.9 | Jharkhand | Power |
| Gare Palma IV/2 & 3 | JSPL | JSPL | 108 | 155 | Chhattisgarh | Power |
Win price in INR/MT
Reserves in MnT
Source: SteelMint Research
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