Shares of Monnet Ispat & Energy jumped 16 percent intraday on Monday. The company has bagged one coal block in Chhattisgarh on the last day of the auction, bringing down the curtains on the first phase of coal auctions that will fetch the states over Rs 1 lakh crore.
"Monnet Ispat, highest bidder at Rs 2,619 (per tonne) for Gare Palma IV/7 (coal mine)," Coal Secretary Anil Swarup tweeted.
The government was successful in selling all the 19 mines in the first lot of auction which began on February 14. Hindalco has bagged the maximum number of mines in the first phase of auction, winning three that includes two in Chhattisgarh and one in Jharkhand.
In the entire auction, the lowest closing bid price was Rs 108 per tonne for the Gare Palma IV 2 & 3 coal blocks in Chhattisgarh won by Jindal Power, while the highest closing bid price was Rs 3502 per tonne for Gare Palma IV/5 coal mine in Chhattisgarh alloted to Hindalco Industries.
Gare Palma IV-7 mine in Chhattisgarh, earmarked for the non-power sector, was the most sought after one in the current lot put on auction in the first tranche.
The mine was earlier allotted to Raipur Alloys & Steel Ltd (now Sarda Energy and Mineral). The Coal Ministry had earlier shortlisted 12 technically qualified bidders for the mine.
Besides Monnet Ispat & Energy, other companies that were in the race for the coal blocks include Balco, Hindalco, JSPL and Jaiprakash Associates. Gare Palma IV-7 mines has extractable reserves of 52.98 million tonnes (MT).
The second round of auction in which government has put on sale 21 mines will begin from February 25.
After sale of 16 blocks, Swarup had said, "The e-auction amount is Rs 83,662 crore. But these blocks will also entail an income to the states by way of royalty which comes to Rs 12,801 crore."
The companies that have bagged 19 blocks include Reliance Cement, GMR Chhattisgarh, Hindalco, Sunflag Iron and Steel, Jaiprakash Associates, Jaiprakash Power Ventures, OCL Iron and Steel, Bharat Aluminium, Essar Power MP, Jindal Power and UltraTech Cement
At 12:30 hrs Monnet Ispat was quoting at Rs 64.45, up Rs 8.40, or 14.99 percent on the BSE.
(With inputs from PTI)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
