Sarda Energy offers 66.75% revenue to bag Chhattisgarh mine

NEW DELHI: Sarda Energy and Minerals Ltd on Monday won a coal mine in Chhattisgarh by agreeing to part with whopping 66.75% revenue to pip seven other firms including Adani Enterprises, Hindalco Industries and JSW Steel. This is the highest revenue share offered by any bidder in the first tranche of commercial coal mine auctions.

The Gare Palma IV/7 coal block in the state was put up for auction on the last day of the auctions. The total geological reserves of the mine are 234.205 million tonnes with a peak capacity of 1.million tonnes per annum. “The e-auction witnessed strong competition amongst the bidders with the mine attracting a good premium over the floor price,” a coal ministry statement said. The mine is estimated to generate 210.5 crore revenue to the state government once it reaches peak capacity.

Other companies in race for the coal mine included Bharat Aluminium Company Ltd, D B Power Ltd, Jindal Power Ltd and Nuvoco Vistas Corporation Ltd.

The pilot tranche of commercial coal auctions is expected to generate about Rs 7,000 crore annually for five states of Jharkhand, Madhya Pradesh, Odisha, Chhattigarh and Maharashtra, coal minister Pralhad Joshi said on Monday.

Joshi asked the state governments to support the winning companies in mine development. "We have another 20-30 years we will be able to use (coal). After that we do not know what pressures are going to be there," he said at a press briefing.

The maximum revenue is expected to be earned by the Jharkhand government, which moved the Supreme Court against holding of the coal mines auction by the Central government. The Jharkhand government will garner Rs 2,690 crore, Madhya Pradesh government Rs 1,724 crore, Odisha Rs 1,059 crore and Maharashtra Rs 321 crore, Joshi told mediapersons on the last day of coal block auctions.

The Chhattisgarh government is likely to get Rs 842 crore revenue.