JSPL Wins Gare Palma IV/5 Coal Block in Auction

Release time：Nov 06, 2019 From：admin

As per media reports, Jindal Steel & Power Limited has won Gare Palma IV/5 coal block in the latest round of auctions with a bid price of INR 230 per tonne, a premium of 53%over reserve price.. The coal block was owned by the company before the Supreme Court in 2014 cancelled all captive mine allocations. The Gare Palma IV/5 mine in Chhattisgarh was closed since de allocation. Mr VR Sharma MD of JSPL, told FE. “The coal would be used to run the 840-MW captive power station and the 1.32-MTPA unit in the company’s Raigath steel plant. When the mine starts producing, we can cut our reliance on expensive coal procured through import or auctions conducted by the Coal India. The final confirmation from the government is yet to come.”

The auctioned mine is part of the 27 blocks put up for bidding by the coal ministry after, in February 2019, the Cabinet allowed private companies to sell up to 25% of production from captive coal mines in the open market. The block earlier belonged to JSPL, before the apex court, in its September 2014 order, had cancelled the licences of 204 captive blocks, saying these had been allocated in an illegal and arbitrary manner. The company had already made significant investments to transport extracted coal smoothly from the mine