Jindal Steel and Power (JSPL), has came out as the highest bidder for Gare Parma IV/1 coal block in the latest round of auctions.
The company had quoted the winning bid of INR 230/MT for the coal block in Chhattisgarh, at a premium of 53% over the reserve price of INR 150/MT.
Notably, JSPL’s winning bid had beaten the likes of JSW Steel and Vedanta who were also in contention for the coal block.
Company’s MD Mr. V R Sharma thanked the Coal Ministry for allowing private sector to participate in the coal block auction, while raising the fact that that captive mining would only promote to the growth of the country. He had also highlighted that the procure coal block would be utilized at their Raigarh based DRI plant and CPP units.
The present tranche of coal block auction has received a dull response as 21 out of 27 blocks were declared invalid for the auctions. While only six mines managed to enter the ongoing second round.
Sources aware of the fact have highlighted that many of the private players didn’t showed interest for the current round of auction as they want to hold their cash for the proposed commercial coal block auctions. However, market participants cited that distant location of coal mines from the end-user plants was the reason for subdued demand, as it would ultimately led to higher transportation cost.
Following the conclusion of auction process for Jamkhani coal block which was scheduled today, the financial bidding for the current round of auction has been drawn to a close.
Next up, the nominated authority would recommend the successful bidders to the Coal Ministry, which will be proceeded by issuance of vesting order for the respective coal mine.
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