Balco bags one more mine in Chhattisgarh

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New Delhi | Published: February 22, 2015 1:17:30 AM

Bharat Aluminium Company (Balco) bagged one more coal block on the eighth day of the auction, taking the total number of mines...

Bharat Aluminium Company (Balco) bagged one more coal block on the eighth day of the auction, taking the total number of mines sold so far through the ongoing auction, which will generate an estimated over R1 lakh crore for respective states, to 18.

Late Friday night, Hindalco Industries had bagged Gare Palma IV/4 mine in Chhattisgarh. The Aditya Birla Group company has bagged three coal blocks — two in Chhattisgarh and one in Jharkhand so far.

Of the 19 blocks put on sale in the first tranche, 18 have been sold in eight days. The remaining one — Gare Palma IV-7 mine in Chhattisgarh — is the most sought after block, as 12 bids have technically qualified for this non-power sector mine. “Gare Palma IV-1 mine closed at R1,585 (per tonne) and the winner is Balco,” a coal ministry official said.

Earlier, Balco had bagged Chotia mine in the same state.

Gare Palma IV/1 in Chhattisgarh has extractable reserves of 49.57 MT. This is expected to generate an estimated R7,856 crore for the state.

“Hindalco is the highest bidder at R3,001 (per tonne) for Gare Palma 4/4,” coal secretary Anil Swarup tweeted.

This will yield around estimated R3,691 crore. After sale of 16 blocks, Swarup had said on Friday: “The e-auction amount is R83,662 crore. But these blocks will also entail an income to the states by way of royalty, which comes to R12,801 crore.” With two more mines being sold, the figure has crossed the R1 lakh-crore mark. Sunday is the last day for the auction of mines in the first tranche. The auction of the second lot of 21 mines will start from February 25.

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