JSPL wins Saradhapur Jalatap East coal block; boosts raw material security

(Photo Credit :

CNBC-TV18

)

Jindal Steel & Power (JSPL) has won the Saradhapur Jalatap East coal block in the latest commercial coal auctions conducted by the Ministry of Coal.

The mine, which holds an estimated 3,257 million tonnes of coal, is located just 11 km from JSPL’s Angul steel plant, making it a strategic addition to the company’s resource base.

JSPL secured the block with a revenue-sharing bid of 10%. The acquisition will help the company reduce its dependence on external coal supplies, ensuring a steady flow of raw materials for its steel production.

This move is expected to improve operational efficiency, lower costs, and protect JSPL from price fluctuations in the coal market.

The 11th round of coal block auctions, launched on December 5, saw bids invited for 12 mines with a combined peak-rated capacity of 15.46 million tonnes per year, excluding partially explored blocks.

Among the key winners, Western Coalfields secured the Dahegaon/Makardhokra-IV block in Maharashtra, while Jindal Steel emerged as the highest bidder for the Saradhapur Jalatap East block in Odisha. Jindal Power won the Banai and Bhalumunda block.

Other successful bidders included Singhal Business, Jharkhand Exploration and Mining Corp, and Rungta Sons.

By strengthening its raw material security, JSPL is also aligning with the government's "Aatmanirbhar Bharat" initiative, which promotes self-sufficiency in key industries.

Also read: Coal India incorporates Joint Venture with GAIL to tap the Synthetic Natural Gas market

The company aims to maintain its competitive edge in the steel sector while contributing to India’s economic growth, it said on Thursday.

Ahead of the announcement, JSPL’s shares closed at ₹912.80 on the BSE, up 1.53% for the day.