COAL AUC­TION ROUND III NETS GOVTRS 4,362 CR

Resource Digest - - NEWS IN BRIEF -

Jaypee Ce­ment won the Ma­jra coal block in Ma­ha­rash­tra with a win­ning bid of Rs 1,230 per tonne as the gov­ern­ment con­cluded the third tranche of coal auc­tions, net­ting a to­tal of about `4,362 crore from three mines.the gov­ern­ment orig­i­nally planned to ac­tion 10 blocks in the third tranche. Bid­ding for four were can­celled be­cause of luke­warm re­sponse while auc­tion of three was de­ferred for rea­sons such as law­suit and tech­ni­cal is­sues.

Jaypee Ce­ment out­bid ACC Ltd, Crest Steel & Power, Emami Ce­ment, Grace In­dus­tries, Jaypee Ce­ment and JK Lak­shmi Ce­ment to bag the Ma­jra coal block that has to­tal ex­tractable re­serves of 14.92 mt. The coal block was pre­vi­ously owned by Gond­wanais­pat.

On the first day of the auc­tion re­cently, the gov­ern­ment had sold one block each in Ch­hat­tis­garh and Ma­ha­rash­tra, which to­gether would fetch rev­enues of `2,527 crore to the gov­ern­ment spread over the life of the mines.

Crest Steel & Power won the Bhaskara­para coal block in Ch­hat­tis­garh at a price of `755 per tonne while Top­worthurja& Met­als won Marki­man­gli-i coal block in Ma­ha­rash­tra at `715 per tonne.

Be­fore this round, the gov­ern­ment had auc­tioned 29 coal blocks in two tranches to pri­vate com­pa­nies and gar­nered over `2 lakh crore. The Supreme Court had in Septem­ber last year can­celled al­lo­ca­tion of 204 mines to firms with­out auc­tion.

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