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Coal auction: Government to begin second phase on Wednesday

The government will begin the second leg of coal mine auction on Wednesday by putting on offer four blocks—all in Jharkhand—on the first day, with firms including Adani Power Ltd, JSW Steel Ltd, Steel Authority of India Ltd and Bharat Aluminium Co. Ltd in the race. The mines that will be put on offer on Wednesday are Jitpur mine, Moitra mine, Brinda mine and Sasai mine in Jharkhand. The companies vying for Jitpur mine—earmarked for the power sector—are Adani Power, Adhunik Power and Natural Resources, Jaiprakash Power Ventures and Jindal Power. Jitpur mine was earlier allocated to Jindal Steel & Power Ltd (JSPL). For Moitra mine—earmarked for the non-power sector—the companies in the race are Jayaswal Neco Industries Ltd, JSW Steel and SAIL. Moitra mine was earlier allotted to Jayaswal Neco. With regard to Brinda and Sasai coal blocks in Jharkhand (the government came out with one bid for both the mines), the companies which have been found to be technically qualified are Balco, Easternrange Coal Mining Pvt. Ltd, Sesa Sterlite and Usha Martin. Brinda and Sasai coal blocks in Jharkhand were earlier allotted to Abhijeet Infrastructure Pvt Ltd. The last day for auction of the mines in the second tranche is 9 March. The government has put at least 15 coal blocks in this round of auction as per the tentative list. Over 80 applications have been found to be technically qualified for the ready-to-produce mines being put on auction. The other mines on auction in the second lot includes Mandakini mine in Odisha, Meral mine in Jharkhand, Tara mine in Chhattisgarh, Nerad Malegaon mine in Maharashtara, Dumri mine in Jharkhand, Ganeshpur mine in Jharkhand, Mandla South mine in Madhya Pradesh, Gare-Palma Sector-IV/8 mine in Chhattisgarh, Utkal C mine in Odisha, Lohari mine in Jharkhand, Jamkhani mine in Odisha. The government which was to begin the auction of second lot of mines last month had to put it off to 4 March because of litigation issues. The government through auctioned 19 mines in the first lot came out with the list of successful bidders for just 15 mines. The remaining four mines are being re-examined by the Nominated Authority as there were some issues including pricing of the bids. The e-auction proceeds from the first lot of mines are over Rs.1 trillion which would go to the states.


source:http://www.livemint.com