Indian Coal Ministry Schedule II Coal Block Auction Result

On 22 Feb’15, the government completed Coal Block Auction (Schedule II) of the 19 Coal Blocks those are now allotted a mining lease for next 30 years.

In the first phase of auction, the Government has auctioned 19 coal blocks and these are now successfully allotted to public & private companies. The auction process started from 14 Feb’15 and completed on 9th day of auction i.e. 22 Feb’15. The first phase of auction depicted outstanding profit of about INR 1 trillion to the revenue of Indian government.

Major Highlights of Auction

1. Monet Ispat & Energy has emerged as winner of Gare Palma IV/7, Chhattisgarh, at INR 2,619/MT, on the last day of auction.
2. The highest number of mines’ allotment is from Chhattisgarh
3. Hindalco Industries received maximum number of mines i.e. it won Gare Palma IV/4, Gare Palma IV/5, Chhattisgarh and Kathautia Jharkhand, at the price of INR 3,001/MT, INR 3,502/MT and INR 2,860/MT respectively
4. The lowest bid price was INR 108/MT for Gare Palma IV 2 & 3, Chhattisgarh won by JSPL, while Gare Palma IV/5 closed with the highest bid at INR 3,502/MT allotted to Hindalco Industries.
5. Gare Palma IV-7, Chhattisgarh, reserved for the non-regulated sector, was the most preferred block. It was earlier allotted to Raipur Alloys & Steel,(Sarda Energy)
6. Some erstwhile holder of coal mines – Hindalco, BALCO, JSPL, GMR, CESC, and Jaiprakash Associates bagged most of the blocks

Coal Ministry has auctioned 19 blocks, this includes 6 blocks for power and rest for non-power sectors. Government had conducted 6 reverse auctions (power) and 13 forward auctions (Steel, Cement) for the regulated and unregulated sectors respectively.

Win price in INR/MT
Reserves in MnT
Source: SteelMint Research