New Delhi, November 3, 2020—The second day of the coal block auction for commercial mining commenced on Tuesday. Sarda Energy and Minerals successfully acquired the Sahapur West mine in Madhya Pradesh, while the Andhra Pradesh Mineral Development Corporation placed the highest bid for the Brahmadiha mine in Jharkhand.

EMIL Mines and Minerals Resources Secure Bandha Block

EMIL Mines and Minerals Resources emerged victorious in the bidding for the Bandha block in Madhya Pradesh, edging out competitors such as Adani Enterprises and Aurobindo Realty and Infrastructure.

Stratatech Mineral Resources Wins Dhirauli Block

Stratatech Mineral Resources emerged as the highest bidder for the Dhirauli block in Madhya Pradesh, offering a revenue sharing rate of 12.50%. Hindalco Industries also expressed interest in acquiring the Dhirauli block.

Brahmadiha Block Acquisition by Andhra Pradesh Mineral Development Corporation

Andhra Pradesh Mineral Development Corporation placed the highest bid for the Brahmadiha coal block, proposing a revenue sharing rate of 41.75%. Sarda Energy and Minerals Ltd. submitted the final offer for the Sahapur West mine at a revenue sharing rate of 26%.

Competitive Auction Process

The coal ministry highlighted the intense competition among bidders, with all mines attracting premiums exceeding the reserve price. The total geological reserves of the mines offered for auction amounted to 1,085 million tonnes, with a combined peak rated capacity (PRC) of 9 million tonnes per annum.

Prior Day’s Auction Results

The commercial coal mine auction commenced on Monday, witnessing Vedanta placing the highest bid for a mine in Odisha, and Hindalco emerging as the top bidder for a block in Jharkhand.

Government’s Self-Reliance Initiative

In June, Prime Minister Narendra Modi initiated the auction process for 41 coal blocks for commercial mining, a move aimed at inviting private sector participation in the coal industry and contributing to India’s pursuit of self-reliance in the energy sector.