Home›Procurement News›India : RELIANCE CEMENT & GMR CHHATTISGARH ENERGY won coal blocks at the new e-auction process
Procurement And Tender News
Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
India : RELIANCE CEMENT & GMR CHHATTISGARH ENERGY won coal blocks at the new e-auction process
Publish Date : 18-Feb-2015
Reliance Cement and GMR Chhattisgarh Energy have been successful to secure coal mines on Saturday via tapping the new transparent e-bidding procedure of the Government. Anil Ambani-promoted Reliance Cement has won a coal block for Rs 798 crore on the first day of coal auctions, while the GM Rao-led company offered a Rs 1,375 crore bid to win a coal block for it. The Central Government has started an e-auction process to offer the coal blocks following the Supreme Court’s cancellation of the earlier allocations of 214 blocks in September 2014.
The Government’s e-auction of mines has witnessed competitive biddings by companies. It has launched the process on Saturday in order to improve coal supply to select sectors to facilitate revitalization of the economic activities. Reliance Cement won the first coal block after it emerged as the highest bidder for the Sial Ghoghri mine in Madhya Pradesh, which has around 56 lakh tonne of reserves. It will pay Rs. 1402 per ton coal extracted from the mine to the State Government, which will translate into a revenue of about Rs. 785 crore for the State exchequer.
The floor price for the coal block was fixed at Rs. 1002 per ton.
The Union Coal Minister Piyush Goyal stated here in New Delhi, “First mine auction shows that natural resources such as coal and iron ore can be auctioned in a transparent manner for the welfare of people.” Reliance Cement had to race with Hindustan Zinc Ltd. and OCL Iron and Steel Ltd, among other bidders, for the Sial Ghoghri mine.
The GMR Group subsidiary GMR Chhatisgarh Energy has won the Talabira-I block in Odisha. The block was the second mine auctioned by the Government for a floor price of Rs. 100 per ton, while the company has secured the block via offering the highest bid of Rs. 478 per ton. The other bidders for the block include Adani Power Ltd., Essar Power M.P. Ltd., OPG Power Generation Pvt. Ltd. and Sesa Sterlite Ltd.
