Aditya Birla Grp’s EMIL Mines and Minerals bids highest for Radhikapur (East) at 16.75 percent Aurobindo Reality and Infra bid highest for Urma Paharitola coal mine at 26.5 percent.
On the 5th day of the commercial coal auction, the Aditya Birla Group placed the highest bid for Radhikapur (East) coal mine at 16.75 percent revenue sharing. The mine has 5 million tonnes per annum (MTPA) capacity which will provide coal security to the company’s coal requirements in Odisha.
Aurobindo Realty and Infra placed the highest bid for Urma Paharitola coal mine at 26.5 percent which is situated in Jharkhand and a reserve of 579 million tonnes (MT).
The government has so far auctioned 17 coal mines for sale of coal. The Aditya Birla Group leads 3 highest bids followed by Aurobindo Realty and Infra along with JMS Mining which has placed the highest bids for 2 coal mines each. Adani group company, Vedanta, and JSPL have bid highest for one coal mine each.
Finance Minister Nirmala Sitharaman in May announced the auction of 50 coal mines under commercial coal auction to make India an ‘Aatma Nirbhar’ economy. The move was brought in to curb coal import and enhance the production of coal and bring in investments and generate employment.
The rules of commercial mining now allow private sector investment with relaxation on entry barriers, net worth, and technical parameters, under a revenue-sharing model.
Under the revenue-sharing model, miners will have to share a percentage of revenue with states as against the earlier regime of rupees per tonne basis auction which was conducted irrespective of the market price of coal.
The government offered 38 coal mines for commercial coal auction but interest received from companies for only 19 mines. The auction of 19 coal mines will end on November 9 and by November 11, the successful bidder’s announcement will be made by the nominated authority.
