The union coal ministry offered 27 coal blocks for auction for the sectors like iron & steel, cement and captive power plants but received interests for only six coal blocks.

On the last day of the auction, Vedanta Ltd bid the highest for Jamkhani coal block at Rs 1,674 per tonne for the block, which has a capacity of 2.6 million tonne per annum.

The company will benefit from the Jamkhani coal block as it struggles with coal supply issues for its aluminium plant in the state of Odisha.

Vedanta had put in 2 bids for the Jamkhani block, others in the fray included Hindalco Industries, JSW Steel, Jindal Steel and Power Ltd (JSPL), Rungta Mines Ltd and a company called Natural Resources Energy.

Amongst other bidders, Birla Corporation bid highest for two coal blocks at Rs 154 per tonne for Bikram coal block and Rs 156 per tonne for Bramhapuri coal block.

JSPL bid highest for Gare Palma 4/1 at 53 percent premium at Rs 230 per tonne. The same coal block auctioned in 2015, had received a bid of Rs 1,565 per tonne from BALCO but the bid was cancelled by the union coal ministry.

The second-highest bid came from Prakash Industries at Rs 1,100 per tonne for Bhaskarpara block as the grade of coal is high on calorific value and is well connected with the rail network.

In 2015, Bhaskarpara had received a bid of Rs 755 per tonne but the winner eventually surrendered block to the government. The winners of this round of coal block auction will be allowed to sell 25 percent of the coal produced from the mines offered in the open market.

First Published:Nov 8, 2019 9:01 PM IST