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Commercial coal auction day 4: Fairmine Carbon, Chowgule and Company bid highest for 1 mine each

Commercial coal auction day 4: Fairmine Carbon, Chowgule and Company bid highest for 1 mine each

Commercial coal auction day 4: Fairmine Carbon, Chowgule and Company bid highest for 1 mine each
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By Anshu Sharma  Nov 5, 2020 7:49:51 PM IST (Published)

Goa-based Chowgule and Company which has interests in mining, shipbuilding emerged as the highest bidder for Sahapur (East) coal mine at 41 percent.

On day four of the commercial coal auction, Jharkhand-based Fairmine Carbon emerged as the highest bidder for the 20.27 MT Rajhara North (Central & Eastern) mine at a 23 percent premium.

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Goa-based Chowgule and Company which has interests in mining, shipbuilding emerged as the highest bidder for Sahapur (East) coal mine at 41 percent. The smaller blocks and newer companies continue to bring in the aggression in the commercial coal mining auction, so far.
So far 15 coal mines have been auctioned. Aditya Birla group has placed the highest bid for two coal mines, Adani Group company, Vedanta and Jindal Steel and Power Ltd (JSPL) have bid highest for one coal mine each.
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Union finance minister Nirmala Sitharaman in May announced the auction of 50 coal mines under commercial coal auction to make India an 'Aatma Nirbhar' economy. The move was brought in to curb coal import and enhance the production of coal and bring in investments and generate employment.
The rules of commercial mining now allow private sector investment with relaxation on entry barriers, net worth, and technical parameters, under a revenue-sharing model. Under the revenue-sharing model, miners will have to share a percentage of revenue with states as against the earlier regime of rupees per tonne basis auction which was conducted irrespective of the market price of coal.
The government offered 38 coal mines for commercial coal auction but interest received from companies for only 19 mines. Adani Group of companies is bidding for 12 coal blocks, followed by Aditya Birla group companies in 8 coal mines, 4 bids from JSPL, 3 bids from Vedanta, and 1 bid from JSW. The auctions of 19 coal mines will end on November 9 and by November 11, the successful bidder's announcement will be made by the nominated authority.
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