Hindalco Industries wins one more coal block; total 3

Hindalco Industries has bagged another mine — Gare Palma 4/4 — in the coal blocks auction. The mine has extractable reserves of 12.30 million tonnes. Hindalco how has three mines in its kitty, including two in Chhattisgarh and one in Jharkhand. The company was the highest bidder at Rs 3,001 per tonne, according to a tweet by Coal Secretary Anil Swarup.

Hindalco, a subsidiary of Aditya Birla Group, had successfully bid for Kathautia mine in Jharkhand on February 15 and was also awarded Gare 4/5 mine in Chhattisgarh on February 19. The company won the latest bid in a process that went on for 12 hours on Friday. The block was previously held by Jayaswal Neco Ltd.

The states in which the 17 coal blocks sold in the ongoing auction are located will receive more than Rs 1 lakh crore, including royalty, over the next 30 years on account of the sale. Also, the reverse auction of coal blocks for power generation (valued at Rs 37,050 crore) will benefit end-users in the form of tariff reduction, Swarup has stated.

The government had placed 19 coal mines up for auction in the first tranche. Jindal Power, Hindalco and Ultratech were among the bidders which bagged 17 of them.

Sunday is the last day of the auction of the first tranche. The second lot of mines will go up for auction from February 25.

 

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Coal Block auction results, winners are Hindalco, UltraTech & Jindal – Day 6

 

On the sixth day of the ongoing coal mine auctions, three companies Hindalco, UltraTech & Jindal Power has won coal blocks.

Hindalco & UltraTech bagged one mine each while Jindal Power won two blocks.

With this, number of mines allocated so far has reached to 16.

Reflecting aggressive bidding for coal mines, Hindalco and UltraTech bagged one mine each while Jindal Power won two blocks on the sixth day of the ongoing auction today, taking total number of mines sold to 16 so far.

UltraTech Cement has won the Bicharpur coal mine in Madhya Pradesh bidding Rs 3,003 per tonne. It has beaten companies like ACC, Hindalco Industries, Hindustan Zinc, Jaypee Cement Corp, Monnet Ispat & Energy and OCL India. The mine is having extractable reserves of 29.12 MT.

Jindal Power Ltd bagged Gare Palma IV-2 & 3 coal mines, having extractable coal reserves of 155.49 MT, in Chhattisgarh for an estimated Rs 1,679 crore. It beat the likes of Adani Power Maharashtra, D B Power, GMR Chhattisgarh Energy, Jindal India Thermal Power, JSW Energy, KSK Mahanadi Power Company, Reliance Geothermal Power and Sesa Sterlite.

Aditya Birla Group flagship Hindalco Industries won the Gare Palma IV-5 block for an estimated Rs 14,858.9 crore. Its winning bid was Rs 3,502 per tonne. The mine has estimated extractable reserves of 42.43 MT. It beat firms including Ambuja Cements, BALCO, Hindalco and Monnet Ispat & Energy.

In the previous five days of auction, companies including GMR Chhattisgarh Energy, Reliance Cement, Sunflag Iron and Steel, Jaiprakash Associates and BALCO won mines.

Tomorrow, a single mine on sale is Gare Palma IV-4 in Chhattisgarh. The companies in race for mine are ACC, BALCO, Godawari Power and Ispat, Hindalco Industries, Jayaswal Neco Industries, Rungta Mines and SKS Ispat and Power.

Meanwhile, Jaiprakash Power Ventures today said it has successfully bidded for a coal mine in MP and a formal communication vesting the said block in its favour is expected in due course of time. Jaiprakash had bagged the Amelia (North) mine in Madhya Pradesh quoting Rs 712 per tonne.

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Aditya Birla owned Hindalco won Gare Palma coal mine

 

Aditya Birla owned Hindalco Industries have won the Gare Palma IV/5 mine in Chhattisgarh.

It has beaten companies like Ambuja Cements, Sesa Sterlite, and Balco.

This is second mine won by the company out of the 13 put on offer so far.

The price-tag for the block is an estimated. Rs. 14,858.9 crore.

The price paid per tonne was Rs. 3,502. Gare Palma IV-5 mine has estimated extractable reserves of 42.43 MT.

The company is also in the race for another coal block of Bicharpur.

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Results of E-Auction for 8 Schedule II Coal Mines

 

The Tender Process for the Scheduled II 23 coal mines was started on December 27, 2014 with the release of Tender Documents. As a part of auction process, Technical Bids, both online bids and offline supporting documents were opened on 3^rd February 2015 in the presence of Bidders.

In the first stage of the tender process, bidders submitted their technical bids on MSTC portal created for the purpose. Bidders were also required to submit separately a sealed envelope containing bank guarantee, power of attorney and the affidavit. The cut-off date for submission of technical bids was 12:00 noon, February 03, 2015.

The electronic bids were decrypted and opened electronically in the presence of bidders. Entire process was displayed on the screen for the bidders. Subsequently, sealed envelopes containing bank guarantee, power of attorney and affidavit were also opened in the presence of bidders. These bids has been evaluated by a multi-disciplinary Technical Evaluation Committee to shortlist bidders for participation in the electronic auction conducted on MSTC portal from February 14, 2015.

Results of the E-Auction are as below:

1. Talabira I : Rs 478/MT by GMR Chhattisgarh Energy Limited
2. Sial Ghoghri : Rs 1402/MT by Reliance Cement Company Private Limited
3. Sarisatolli : Rs 470/MT by CESC Limited
4. Belgaon : Rs 1785/MT by Sunflag Iron and Steel Company Limited
5. Kathautia : Rs 2860/MT by Hindalco Industries Limited
6. Marki Mangli III: Rs 918/MT by BS Ispat Ltd
7. Mandla North : Rs 2505/MT by Jaiprakash Associates Limited
8. Trans Damodar : Rs 940/MT by The Durgapur Projects Limited

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CEA asks Tata, Hindalco others to speed up coal mine output…

 

The Central Electricity Authority has asked companies including NTPC , Hindalco,  Tata Power  and  Tata Steel  to expedite production from captive coal blocks allocated to them and inform it about any constraints.

"A meeting was held...to review the status of development of captive coal blocks allocated for power generation," according to the minutes. "There are constraints in supply of coal to new power plants...therefore, it is necessary to expedite the development of captive coal blocks," the minutes said.

The Supreme Court had observed last week that huge investments made by companies in coal blocks without getting approvals cannot be a ground for not cancelling licences. The apex court had sought the Centre's response on whether it intended to de-allocate such mines. The CEA asked "the participants to intimate the latest status of development of captive coal blocks and end-use power plants, including the constraints being faced by them, if any, in obtaining clearances, land acquisition and mining lease," according to the minutes of the meeting.

The CEA would try to facilitate the removal of the constraints, it added. The CEA is the apex technical organisation for facilitating development of the power sector in the country. During the meeting held in December, the CEA reviewed the progress of 22 mines, including NTPC's Chatti Bariatu, Talaipalli and Pakri Barwadih blocks; Essar Power and Hindalco's Mahan block; Mandakani 'A' block jointly allotted to Tata Power, Monnet Ispat & Energy and Jindal Photo, and Ganeshpur block given to Tata Steel and Adhunik Power & Natural Resources Ltd.

The coal ministry has allocated 88 captive blocks with geological reserves of about 1.37 billion tonnes of coal for power generation.

NTPC stock price

On January 15, 2014, at 12:03 hrs NTPC was quoting at Rs 132.80, up Rs 1.40, or 1.07 percent. The 52-week high of the share was Rs 167.25 and the 52-week low was Rs 122.65.

The company's trailing 12-month (TTM) EPS was at Rs 14.55 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 9.13. The latest book value of the company is Rs 97.49 per share. At current value, the price-to-book value of the company is 1.36.

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Coal Ministry issued show-cause notices to 10 power companies for delay in coal block development…

Power India found that Coal Ministry issued show-cause notices to 10 firms, including Reliance Power's Sasan, Tata Power, Hindalco and Grasim Industries asking reasons for delay in developing coal blocks and warned that the same may be cancelled if explanation is not given in 20 days.

 

As stated under the notice to Reliance Power’s Sasan Project by  Coal Ministry:

"You are called upon to show cause...as to why the delay in the development of the coal block(s) should not be held as violation of the terms and conditions of the allotment ... failing which...action as appropriate would be taken against your company(ies) for de-allocation...,"

Similar notices have been issued to other companies as well.

 

These firms were allocated blocks between 1999 and 2008 for development of captive mines for power generation. The projects for which the coal blocks were given, included 4,000 MW Sasan ultra mega plant in Madhya Pradesh. “

The show cause notices have also been sent to public sector Jharkhand State Mineral Development Corporation and Chhattisgarh Mineral Development Corporation. Besides MP, the blocks are located in Jharkhand and Chhattisgarh.

Notices would be sent to about 58 coal block holders, sources said. Of 218 blocks allocated 25 have been taken back by the government.

While the coal-mining for commercial sale is a monopoly of the PSU Coal India, firms in power, steel and cement were given the coal blocks for captive use on the first-come-first-serve (FCFS) basis.

But most of them could not develop the blocks for various reasons ranging from problems in environment clearances and difficulties in land acquisition.

Meanwhile, the FCFS policy has come in for a severe criticism by the Comptroller and Auditor General (CAG), which has reportedly estimated 'windfall gains' to private and public sector companies at Rs 10.67 lakh crore

 

 

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