Giving a major push to privatization, CG Natural Resources becomes the highest bidder for the Khargaon coal block in Chhattisgarh. Adani Group Chhattisgarh, Hindalco, Vedanta and other major players are already running their operations across the state for getting the maximum production from the mines.
CG Natural Resources Pvt Ltd has emerged as the highest bidder for the Khargaon coal block in Chhattisgarh. The company quoted a six per cent premium on the reserve price of Khargaon the coal mine.
As per the official report, “Three coal mines (two in Chhattisgarh and one in Jharkhand) were up for electronic auction on Day 3 of auction and Khargaon is a partially explored mine with geological reserves of 250 MT.”
Chhattisgarh has always been mentioned among the largest coal-producing states in India. It is estimated to have 16 per cent of the total coal deposits of India. Around 44483 million tonnes of coal has been estimated across the 12 coalfields of the State located in Raigarh, Surguja, Koriya and Korba districts.
Contemplating the richness of the coal reserves, private players are foraying the coal mining sector. Earlier for the Gare Palma Sector II in Chhattisgarh, Adani Group mining chhattisgarh bagged the coal mining agreement (CMA) from Maharashtra State Power Generation Company (MAHAGENCO). The contract period of the Chhattisgarh’s coal mine between Adani and MAHAGENO is 34 years, including for mine development and final mine closure
During the L1 bidding of the coal mines in Chhattisgarh, Adani Group was selected as the following the reverse auction.
Additionally, Adani Power had also announced the acquisition of GMR Chhattisgarh Energy Ltd
which owns and operates a 1,370 MW (2 X 685 MW) Supercritical power plant in Raipur District of Chhattisgarh. Apart from Adani Group Chhattisgarh, Aditya Birla group firm Hindalco is also bolstering the state’s economy and coal sector. It is managing the Gare Palma IV/5 mine in Chhattisgarh with a huge coal reserve.
The recent blocks, put on auction by the Ministry of Coal, have been witnessing stiff competition from bidders. The technical bids that were submitted have been evaluated and the list of technically qualified bidders is also published. Recently, the coal ministry initiated the electronic auction of the coal mines.
Earlier this year, in March, Nominated Authority, Ministry of Coal launched the auction process of 67 coal mines for sale. During the first tranche of auction for commercial mining, the total number of coal mines that have been successfully auctioned was 20 out of the total 38 coal mines offered.
Aiming towards diminishing substitutable quantities of the import of coal, India is focusing to increase domestic coal supplies to the consumers, rationalize coal movements, review certain levies, incentivize domestic coal consumption.
As per the official data by the Coal Ministry, it is projected that the coal demand in India will grow from 955.26 MT in 2019-20 to 1.27 BT in 2023-24. To fulfill the ever-growing demand, a coal production blueprint is prepared and state-owned CIL has been given a target of producing 1 BT coal by 2023-24.