Jindal Power Ltd has emerged as the highest bidder for another block on Saturday. This is the second time the company has emerged as the highest bidder for a block and this time it is the ready-to-produce coal block called Tara in Chhattisgarh. Jindal Power’s bid was Rs 126 a tonne.

The block reserved for the power sector hit zero in the initial phase of reverse bidding mechanism adopted for power sector. Under the reverse bidding, the potential buyers have to bid below a capped price of coal till they hit zero, after which forward bidding starts. In forward bidding, the highest bidder wins.

The block has extractable reserves of 166.92 million tonne and was previously owned by Chhattisgarh Mineral Development Corporation. Jindal Power Ltd was also the highest bidder for the Gare Palma IV/2&3 block in the auctioning for producing mines. However, that bid is currently under investigation.

Aditya Birla Group’s Hindalco started the auctioning on Saturday with another victory. Hindalco’s bid of Rs 2,127 a tonne for the Dumri block in Jharkhand emerged as the highest bid. The ready-to-produce block is Hindalco’s third win after it won two producing coal blocks between February 14 and February 22.

Dumri has extractable reserves of 46.13 mt and was previously owned by Nilachal Iron and Power Ltd.

The third block on offer during the day, Nerad Malegaon, was sold to Indrajit Power Pvt Ltd for Rs 660 a tonne. The block has around 20 mt of geological reserves and was previously owned by Gupta Metallics and Power Ltd.

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