Jindal Steel and Power Limited (JSPL) has won Gare Palma IV/5 coal block in the latest round of auctions. The company has emerged as the highest bidder for the coal block with a bid price of Rs 230 per tonne, a premium of 53 percent over reserve price of Rs 150/tonne.

JSPL Managing Director VR Sharma confirmed to CNBC-TV18 that they were the highest bidder at Rs 230. “The government has got a good price and I am sure this will boost the confidence of the Indian industry, especially the power and steel sector, and will accelerate growth,” he said, adding that the country’s economy will be on the fast track with more and more people being encouraged to get mines.

While Rs 230 is the base price, there are other levies, royalty, GST charges and mining expenses. The coal from the block would be used for Raigarh and CPP unit, which would help increase the company's EBITDA.

With the availability of coal increasing, JSPL would be able to run its plants fully, Sharma added. Currently, the company was sourcing coal via linkage and local buying.