Four coal blocks in Raigarh district in Chhattisgarh carrying reserves of more than 2600 million tonnes (mt) will be selected by the mine developer and operator (MDO) to start the mining activities.

The blocks have been allotted to the state-run power companies that include Gujarat State Electricity Corporation Limited (GSECL), Maharashtra State Power Generation Company (MSPGC), Chhattisgarh State Power Generation Company (CSPGC) and National Thermal Power Corporation (NTPC). The process of selecting the MDO was already in progress and in a month or two it will be concluded.

With the companies floating global tenders, a tough competition to bag the deal is seen ahead. Besides Naveen Jindal’s company, Sainik Mining, Triveni Engineering, Adani Mining are among others in the fray.

However, all eyes are focused on Adani Mining Group Chhattisgarh which is a subsidiary of the Adani group, as the company is looking for an increase in profits from the deal. The company is currently acting as MDO for Rajasthan Vidyut Nigam Limited that has a coal block in Chhattisgarh’s Sarguja region. Adani Mining would be participating in the bid for all four coal blocks. The company did not respond to the mail sent for its comment on the issue.

According to reports, the company submitted its proposals for the NTPC block as well as the Gujarat blocks while it was making preparations for Maharashtra or Chhattisgarh. There is no other company that has been identified as being involved in all four coal blocks. But the challenges for Adani Mining would be manifold.

The MDO for four blocks will be selected following the method of the reverse auction that would result in frenzied bidding. For the GSECL block, the first tender was canceled and fresh was floated as Adani Mining was the only bidder as other companies failed to match the clauses mentioned in the Qualification Requirements (QRs). According to reports that the GSECL had made some changes to the QRs to allow more players to take part.