Coal news and updates

The Coal Ministry has extended the deadline to June-end for submitting applications by companies for participating in the competitive bidding for three coal blocks.

"We have extended the last date for receiving applications to June-end due to request from bidders," an official source said.

Earlier, interested companies were asked to submit applications by May-end, the source added.

As of now, the government has received 36 applications from companies like  Jindal Steel and Power Ltd and  Tata Steel  in repose to the tender for allotment of mines.

The government had in February put three mines in Jharkhand and West Bengal for auction for captive use.

The much-delayed auction features mines that have total reserves of 500 million tonnes.

The Centre had earlier drawn flak for delaying auction and the CAG ha said that allotment of 57 mines to private firms without auction had resulted in a notional loss of Rs 1.8 lakh crore to the exchequer.

The Ministry of Coal offered three blocks for auction for captive use for steel, cement and sponge iron companies - two in Jharkhand and one in West Bengal.

The blocks in Jharkhand include Jhirki & Jhirki (West) of East Bokaro Coalfield having geological reserves of 267.91 MT coking coal for steel (blast furnace) and Tokisud-II of South Karanpura Coalfield with 127.692 MT of reserves for cement plant.

The mine in West Bengal, Andal Babuisol of Raniganj Coalfield, has about 103.841 MT of reserves for sponge iron.

Last year, the government had allocated 17 coal mines to central and state public sector units, including four to NTPC. It had planned to auction 54 coal blocks with total estimated reserves of about 18 billion tonnes.

Amid the controversies shrouding coal blocks allotment, the government for the last two years has been saying that the auction would take place shortly.

The Cabinet last year in September had approved the methodology for auctioning coal blocks, providing for upfront and production-linked payments and benchmarking of coal sale prices.

The government has set up an inter-ministerial panel to examine applications from companies for the allotment of three coal blocks on tariff bidding.

Jindal Steel stock price

 

On May 16, 2014, at 11:56 hrs Jindal Steel & Power was quoting at Rs 268.00, up Rs 10.00, or 3.88 percent. The 52-week high of the share was Rs 316.30 and the 52-week low was Rs 181.55.

 

The company's trailing 12-month (TTM) EPS was at Rs 14.12 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.98. The latest book value of the company is Rs 149.07 per share. At current value, the price-to-book value of the company is 1.80.

 

 

Source: PTI