Big names bid for 3 coal-to-liquid blocks

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New Delhi, Jul 23 : The three coal blocks on offer for the multi-billion-dollar coal-to-liquid (CTL) projects have seen a rush of bids from public and private sectors. The ministry of coal has received 30 bids for the blocks that hold over 4 billion tonne of reserves, sufficient to fuel three CTL projects of $6-8 billion each.

The coal blocks on offer are the Ramchandi, the North of Arkhapal Srirampur and the Palabani, all in Orissa. Each block holds reserves 1 to 1.5 billion tonne.

Companies in the race includes Mukesh Ambani’s Reliance Industries Ltd (RIL), Anil Ambani’s Reliance Power Ltd (RPL), a consortium of Tata & South Africa’s Sasol, Essar Oil, GMR Infrastructure, JSW Steel Ltd, Jindal Steel & Power, Adani Enterprises, India Bulls, Steel Authority of India Ltd (SAIL), Indian Oil Corporation, GAIL (India) Ltd, Sterlite, Welspun, Vedanta Aluminium and Bhushan Steel, among others.

Sources said many—including RIL, RPL, the Tatas and the Jindals—have submitted multiple bids. The Anil Ambani group has, for instance, submitted two bids through Reliance Power and Reliance Infrastructure Ltd for all the three blocks. Similarly, Mukesh Ambani’s RIL is reported to have submitted separate bids for each of the three blocks along with another bid for the three blocks combined. Jindal Steel & Power and the Tatas companies have also submitted multiple bids.

An inter-ministerial group—with representations from the Planning Commission, ministries of finance, coal, commerce and petroleum—is expected to shortly examine the proposals.

The Ambani brothers interest in the blocks is expected to open another round of controversy after the recent spat over Rcomm’s proposed merger with MTN.