CG, Maha mines get lower bids in second tranche of coal block auctions

During the second tranche of coal block auctions for commercial exploitation, the mines in Chhattisgarh and Maharashtra have brought in the lowest bids in terms of percentage hikes proposed over the reserve price. Adani Power Maharashtra Limited of Adani Group received the Gondkhairi block at a bid of 9.5% over and above the reserve price. A company from the city, Sunflag Iron and Steel Limited, received Bhivkund block for an offer of 9% over and above the reserve price in the Chandrapur district. CG Natural Resources Private Limited, another Adani Group company, bagged two coal blocks in Chhattisgarh for a bid of 6%. CG Natural Resources was set up for operations in Chhattisgarh. Adani Power in Maharashtra has a power plant in the Gondia district in Tiroda. The tenders have been floated based on the percentage hike offered on the reserve price. The fixed cost of the reserve is at 4% of the representative price of the coal block, and the latter is calculated based on numerous factors such as notified price, imported price channel, the volume of coal, etc. A source in the sector told the media that the parties that are interested should bid at a rate higher than 4% of the reference price. There is a significant difference between the offers received for those in Chhattisgarh and Maharashtra, and other mines. Rauta mine in Jharkhand, for example, received an offer of 75% over the reserve rate. Shreesatya Mines Private Limited bagged the mine, and Prakash Industries received the Bhaskarpara mine in Chhattisgarh for a bid of 55.75% over the reserve price. Jharkhand's two other mines received an offer of 54.50% and 24.25%. The blocks have been awarded to South West Pinnacle Exploration Limited and Shreesatya Mines, respectively. The offers received by Maharashtra in terms of percentage for the mines was also substantially less than those situated in the state auctioned in the first tranche last year. Aurobindo Realty and Yazdani International Private Limited bagged the Takli Jena Bellora, and Marki Mangli-II blocks in Chandrapur, respectively and both the companies bid at 30.75% more than the reserve rate. Image Source Also read: Commercial coal auction: New players take lead in second phase Also read: Govt gets bids for 19 coal mines in commercial mining auction