Financial bid round for commercial coal mining commenced today with 5 coal blocks up for grabs on the first day of auction.
The winners in the auction were a mixed bag of end-users, miner and traders, but subdued response was seen in terms of final bid offers which recorded average gain of 4.7% over the floor price.
According to auction participants, Takli Jena Bellora block was bagged by Aurbindo Reality at a final offer of 30.75%. Bidding for the block started with an initial high floor price of 30.25% received in the technical round, however, it failed to replicate the same intensity in the financial bid.
Likewise, Chakla and Urtan blocks were procured at relative ease by Hindalco and JMS mining respectively.
Fierce competition was seen for Radhikapur (West) block which accumulated highest geological reserve among the others and had four participants in contention. Eventually, Vedanta emerged as the winner with closing bid of 21%, thus recording premium of 33% over the floor price.
Marki Mangli-II also witnessed similar response from the bidders. Being a schedule-II block, it was already in operation therefore coal production can be started promptly as it possesses all the statutory clearances and also boost better evacuation facility.
Bids received for the block even outperformed Radhikapur in terms of premium, as it was sold at a final price of 30.75% against the floor price of 13.5%.
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