India: Five Coal Mines Taken in the First Day of Auctions
November 4, 2020 - Five coal mines were bid out on Monday, the first day of the Centre’s commercial coal mining auctions. The winners on Day 1 were Aurobindo Realty and Infrastructure, JMS Mining, Yazdani International, Vedanta and Hindalco Industries.
Companies are competing on the basis of the share of revenue they would part with to the respective State governments. There is no end-use restriction on the coal that is mined.
A Coal Ministry official said that in all the mines auctioned, the final offer received was above 10 percent, signalling a strong demand.
The MarkiMangli II, and Takli Jena Bellora North and Takli Jena Bellora South coal mines in Maharashtra attracted the most interest on Monday. According to officials monitoring the auction, bidding for the MarkiMangli II coal mine went on for longer than the rest.
It may be recalled that the Maharashtra government had opposed the auction of this coal mine on environmental grounds. According to State Environment Minister Aaditya Thackeray, the mine falls within the Tadoba-Andhari Tiger Reserve and the Tipeshwar Wildlife Sanctuary in eastern Maharashtra.
Despite the opposition, this mine was the most hotly contested, with the winning bidder, Yazdani, offering to share 30.75 percent of the revenue with the State.
Officials in the know said bidding for this mine went on for well beyond 5 pm while that for other mines closed much earlier in the day. Yazdani outbid Andhra Pradesh Mineral Development Corporation and Refex Industries to bag this mine.
The Takli Jena Bellora North and Takli Jena Bellora South are the only other coal mines where the winning bidder, Aurobindo Realty and Infrastructure, has offered to share 30.75 percent revenue with the State. The company had outbid Sunflag Iron and Steel Company.