Coal news and updates

JSPL likely to justify low bid price to coal ministry

March 23: Jindal Steel & Power (JSPL) is likely to justify the low bid prices at the coal block auctions for Gare Palma IV/2, IV/3 and Tara blocks to the Ministry of Coal, the company said in a filing to BSE on March 23.

Last week, the Ministry of Coal (MoC) had decided to cancel Gare Palma IV/2, IV/3 and Tara coal blocks won by JSPL in the recently-concluded auction along with several other blocks owned by other companies.

“We would make our best effort to engage in dialogue with the Ministry of Coal and government authorities..,” the company statement said.

The company justified its bid prices for Gare Palma IV/2 and IV/3 saying that the total bid amount stands at Rs 808 per ton duly factoring the complete discount on the ceiling price of Rs 700 per ton and additional premium of Rs 108 per ton.

The effective value of the bid for the Tara coal block stands at Rs 1,096 per ton duly factoring the complete discount on the ceiling price of Rs 970 per ton and the additional premium of Rs 126 per ton, the company statement said.