Aditya Birla Group’s EMIL mines has bid the highest on Odisha and Urma Paharitola coal mines in Jharkhand.
The two mines have a total geological coal reserve of 755.63 million tonnes and were bid on the fifth day of commercial coal mine auctions and a total of 17 coal mines have been auctioned to date.
Radhikapur (East) mines, Adani Enterprise LTD, Jindal Steel, and Power Ltd, and National Aluminium Company Ltd were among the other bidders. Further, Adani Power Resources, Welspun Steel LTD, JMS Mining Private Ltd, Adicorp Enterprises Private Ltd, and India Coke and Power Private Ltd will fight for Urma Paharitola mines. A government official said, “The e-auction process has seen a strong competition and the two mines received good premiums over and above the floor price.”
The auction has a two-part process. A bidder needs to bid for the percentage revenue share over the reserve price. The bids are taking place at a time when the global investors community is focusing on Environment, Social, and Governance. India, while transitioning to a green economy, has called for a reset on the climate debate on coal as a fuel.
The coal ministry, initially put 38 coal mines for auction, out of which 19 are already sold. There were initially 76 bids from 42 companies for 23 coal mines. There are 15 mines which have no buyer.
The last auction might take place on 9 November, with two more coal mines of Jharkhand and Chhattisgarh, left to be bid out. Indian coal requirement may rise to 1123 million tonnes by the year 2023. At present only 700 mt is required. As per the earlier plan, the coal mines were ought to produce 1.5 billion tonnes this year.
In spite of being the owner of the four largest coal reserves, India imports 233 million tonnes of coal.