The financial bid round for the second tranche of commercial coal mining auctions commenced today with three coal blocks up for grabs on the first day itself.
Similar to the lacklustre response seen in terms of participation, the auction started on a weak note as these blocks receive subdued floor price from the bidders. Incidentally, against the normative floor price of 4% set for the auction, the highest floor price received was for the Gondkhari block at 8%.
It is pertinent to note that sales of coal blocks for commercial mining are based on the revenue sharing model in which the bid parameters are set as a percentage share of the revenue payable on actual production.
Chhattisgarh Natural Resources managed to edge-out Aurbindo Realty with ease to acquire the 250 million tonnes (mn t) rated capacity Jhingador block at a bid price of 6%.
Similarly, not much contest was seen in the battle of two end-users for the Gondkhari coal block which was bagged by Adani Power at a final price of 9.5% against the floor price of 8%.
In fact, Jogeshwar and Khas Jogeshwar was the only blocks that saw moderate resilience in the bidding process as a late rally was seen for the sole coking coal block left in the sale.
Eventually, after tussle amongst the three participants in contention for the block, South West Pinnacle emerged as the winner by submitting a final bid of 24.25% which was 19.25% higher than the floor price.
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