Jindal Power has acquired Gare Palma IV/2 and 3 coal blocks on the third day of an ongoing financial bidding round under sixth tranche of commercial mining auctions.
These are two separate blocks spread across Raigarh district of Chhattisgarh. However, the coal ministry had considered combined sale of both the blocks against a single bid.
Interestingly, the Gare Palma blocks had been under the spotlight after a maximum of 15 bidders had shown interest in the technical round. The reason being it possessed necessary statutory permissions or approvals required for commencing the mining operations.
In the end, Jindal Power emerged as the winner by placing a closing bid of 30.75%.
On similar grounds, the other similar coal blocks in the vicinity viz. Gare Palma IV/1, Gare Palma IV/6 and Gare Palma IV/7 were allocated in the previous tranches.
Entry of newbies
The outcome of the bidding round marked entry of new players who have acquired coal blocks in these auctions.
Arjuni West block was sold at a bid price of 25.25% to Ganga Khanij, while Namchik Namphuk block went to Coal Pulz.
Historically, buyers have shown greater interest in blocks with lesser coal reserves given the need for long-term capital investment in blocks with larger reserves amid an uncertainty over the future of coal. And the case of Namchik Namphuk was no different.
The block located in Arunachal Pradesh, having geological reserve close to 15 mnt, received a final bid price of 65.5%, the highest so far in this round.
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