Adani Enterprises Ltd (AEL) alongwith its wholly-owned subsidiary company, Gare Palma II Collieries Private Ltd (GPIICPL) has signed a coal mining agreement (CMA) with Maharashtra State Power Generation Company Ltd (MAHAGENCO) for development and operation of Gare Palma Sector II coal mine.
India’s Ministry of Coal, part of the Government of India, allocated Gare Palma Sector II coal mine to MAHAGENCO in an allotment order dated 31.08.2015 under the Coal Mines (Special Provisions) Act 2015. The coal block is allotted for development, operation and captive consumption of coal at its end use thermal power plants located at Koradi, Chandrapur and Parli.
As per the approved mining plan the peak rated capacity of GP-II coal mine is 23.6 Mt/y with total mineable reserve of 553.177 Mt for the opencast mine. MAHAGENCO floated a tender for selection of Mine Developer and Operator (MDO) for development and operation of Gare Palma II coal mine on 31.03.2016. After reverse auction Adani Enterprises Ltd emerged as the L-1 bidder.
MAHGENCO issued a Letter of Acceptance (LOA) to the company. As per the tender provision. the company has formed a WOS (SPV company), namely GPIICPL, and the Coal Mining Agreement (CMA) has been executed between MAHAGENCO, AEL & GPIICPL. The contract period will be of 34 years including mine development and final mine closure. By this development, the contractual capacity of AEL as an MDO has now become 104.2 Mt/y.