Commercial Coal Mine Auction RESULTS: Strong and healthy competition! What happened on Day 1 of bidding

In all the mines auctioned, the final offer received is above 10% signalling strong demand of coal mines in the market.

The blocks put on auction by Ministry of Coal generated wide interest from bidders who had submitted their bids for various blocks on offer. Reuters pic.

According to a statement of Ministry of Coal, Day 1 of Commercial Coal Mine Auction has witnessed an upbeat beginning. "First day of auction of coal mines for sale of coal saw strong and healthy competition among the bidders. Ministry of Coal had launched the auction of coal mines for commercial mining on June 18, 2020 pursuant to a two stage forward auction process (comprising of Initial Offer and Final Offer), wherein the bidders have to bid for the percentage revenue share over the reserve price.

The results for Day 1 are as under:

S. No. TRENDING NOW	Name of the Mine	State	PRC (mtpa)	Geological Reserves (MT)	Closing Bid Submitted by	Reserve Price (%)	Final Offer (%)	Annual Revenue Generated (Rs. Cr.)
1	Takli Jena Bellora North and Takli Jena Bellora South	Maharashtra	1.50	117.26	AUROBINDO REALITY AND INFRASTRUCTURE PRIVATELIMITED/146875	4	30.75	267.16
2	Urtan	Madhya Pradesh	0.65	55.391	JMS MINING PRIVATE LIMITED/147074	4	10.50	124.27
3	MarkiMangli II	Maharashtra	0.30	11.44	YAZDANI INTERNATIONAL PVT. LTD. / 148341	4	30.75	53.43
4	Radhikapur West	Odisha	6.00	312.04	VEDANTA LIMITED/68522	4	21.00	592.28
5	Chakla	Jharkhand	5.30	76.05	HINDALCO INDUSTRIES LIMITED/64856	4	14.25	519.54

What happened on Day 1 of bidding?

The blocks put on auction by Ministry of Coal generated wide interest from bidders who had submitted their bids for various blocks on offer.

The technical bids submitted were evaluated and the list of Technically Qualified Bidders was declared. Pursuant to this, Ministry of Coal has commenced the electronic auction of the coal mines for commercial purpose today at 11:00 AM.
The Day 1 of e-auction has witnessed strong competition, with auction of some of the mines going on for more than3-4 hours.

In all the mines auctioned, the final offer received is above 10% signalling strong demand of coal mines in the market.

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