GMR, Reliance Cement Win Bids At First Auction For Coal Mines

The government of India in its first auction of mineral resources on February 14, 2015 successfully auctioned two coal blocks.

The Sial Ghoghri block bid was won by Reliance Cement, lead by Anil Ambani, while the second bid for Talabira-1 mine, was won by GMR Chhattisgarh Energy Limited.

The bids were won for an estimated sum of Rs 1,371 crore and Rs 797.74 crore respectively for Sial Ghoghri and Talabira-1.

The The Sial Ghoghri mine, which is located in Madhya Pradesh has a reserve of 6 million tone. The Talabira-1 mine, which is in Orissa, has a total extractable reserves of 30 million tone.

To win the bid, Reliance Cement had to move over bids placed by OCL Iron and Steel and Hindustan Zinc Limited, while GMR Chhattisgarh Energy Limited won the bid over Sesa Sterlite, Adani Power, and Essar Power.

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The proceeds from the landscape will only aid the economical state of the states concerned, said coal secretary Anil Swarup.

The Sial Ghoghri was held by Prism Cement earlier, while Hindalco Industries owned Talabira-1. The auctions were mandatory after Supreme Court in 2014 asked for cancellation of 204 coal blocks previously allocated.

For bidding for 21 blocks, companies like Jindal Steel and Power Ltd, GMR Chhattisgarh Energy, Bharat Aluminium Company (Balco) and Ambuja Cement qualified for the auction among 134 names.

The government planned to auction 23 blocks initially, but had to hold the two blocks of Gotitoria East & West blocks, after Jabbalpur High Court gave an order.