RAIPUR: Naveen Jindal-led Jindal Steel & Power (JSPL) having much higher stakes in Chhattisgarh, both in steel and power sector has emerged as the highest bidder for Gare Palma IV/1 coal block situated in Gharghoda and Raigarh, tehsil of Raigarh district, Chhattisgarh. The bid price was Rs 230 per tonne, a premium of 53% over reserve price.
Earlier, the same mine was quoted by Bharat Aluminium Company (Balco), part of Anil Agarwal-led Vedanta Ltd. Just about a fifth of Rs 1,585 per tonne, in 2015 through auctions, which was rejected by the coal ministry.
Another mine in Madhya Pradesh, Bikram, which was auctioned on November 1, received the highest bid of Rs 154 per tonne from Birla Corporation against a reserve price of Rs 150 per tonne. As per reports, out of the annual auction, auctions for two have been completed.
Meanwhile, at Bombay Stock Exchange the JSPL stock surged 11.31% to Rs 137.25 on Monday.
A company executive said coal from Gare Palma IV/1 will be used by the company for its Raigarh plant as well as for captive power plants which are near the mines.
It is to note that in coal block auction in 2015, the coal minister had rejected Jindal Power’s bids for Gare Palma IV/2&3 block and Tara block that received low bids as compared to other blocks.
Similarly, Coal India Limited, took over custody of Gare Palma IV/1 after Balco, even after being emerging as highest bidder, the bid was rejected by government. After which government of Chhattisgarh had requested the Central Government to issue directions to start mining operations in Gare Palma IV/1 at the earliest.