Bharat Aluminium Company (Balco) on Saturday won its second coal block during the ongoing bidding of under production reserves, as it bagged the Gare Palma IV/1 block in Chhattisgarh which has extractable reserves of 49.57 million tonnes. The block is expected to generate an estimated Rs 7,856 crore for the state.
With this, the total number of mines sold so far through the ongoing auction has gone up to 18 that will generate an estimated over Rs 1 lakh crore for respective states where these are located. The only block which is left to be bid - Gare Palma IV/7 - is also situated in Chhattisgarh. It is the most sought after block as 12 bids have technically qualified for this non-power sector mine. The bidders include Balco, Hindalco, JSPl, Jaiprakash Associates, Monnet Ispat & Energy ltd and Rungta Mines, among others.
late on Friday night, Hindalco Industries had bagged Gare Palma IV/4 mine in Chhattisgarh. The Aditya Birla Group company has now bagged three coal blocks - two in Chhattisgarh and one in Jharkhand so far. Of the 19 blocks put on sale in the first tranche, 18 have been sold in eight days.
Prior to Gare Palma IV/1, Balco had bagged Chotia block which is located in Chhattisgarh. After the sale of 16 blocks, Coal Secretary Anil Swarup on Friday had said that the e-auction amount is Rs 83,662 crore. But these blocks will also entail an income to the states by way of royalty which comes to Rs 12,801 crore. Besides, reverse auction for the power sector will result in benefits to the tune of Rs 37,050 crore to end-users by way of a cut in tariff, Swarup had added.
With two more mine having been sold after that, the figure has crossed the Rs 1 lakh crore mark. The companies that have bagged 18 blocks include Reliance Cement, GMR Chhattisgarh, Hindalco, Sunflag Iron and Steel, Jaiprakash Associates, Jaiprakash Power Ventures, OCl Iron and Steel, Bharat Aluminium, Essar Power MP, Jindal Power and UltraTech Cement.
Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19. February 22 is the last day for the auction of mines in the first tranche. The auction of second lot of 21 mines (which are yet to start production) will begin from February 25.