JSPL Wins 3,257 MT Saradhapur Jalatap East Coal Block

31 Mar 2025 , 12:06 PM

Jindal Steel & Power (JSPL) has emerged as a winner of the Saradhapur Jalatap East coal block located at the state of Odisha in the recently concluded commercial coal auctions by the Ministry of Coal. The block is located 11km away from JSPL’s Angul steel facility and has an estimated coal holding of 3,257 million tonnes, giving the company a competitive edge on the transportation and logistics front.

JSPL had 10% revenue-sharing bid in coal block, increasing access to raw materials for steel. The acquisition will reduce the company’s dependence on external coal suppliers, providing a more stable and lower cost source of raw materials. Associated with secured operations for JSPL: Hemant Darda, Executive Director JSPL.

The stable supply of coal will enable JSPL to increase production capacity, optimize resource utilization, and maintain its competitive position in the steel manufacturing industry.

The 11th round of commercial coal auctions, launched on December 5, 2024, invited bids for 12 coal blocks with a combined peak-rated capacity of 15.46 million tonnes per year, excluding partially explored blocks.

Other major companies that won coal blocks in this auction include JSPL and several industry leaders, bolstering their respective resource bases. The Dahegaon/Makardhokra-IV coal block situated in Maharashtra was successfully won by Western Coalfields.

Synchronous with the signing, the Banai and Bhalumunda coal block was won by Jindal Power, which will further add to Jindal Power’s coal reserves in raw material for Power Generation and Steel Production.

Other winners in the auction included Singhal Business, Jharkhand Exploration and Mining Corporation, and Rungta Sons, highlighting the competitive nature of coal block acquisitions.

The proactive move of Saradhapur Jalatap East coal block acquisition supports the Government of India’s agenda of “Aatmanirbhar Bharat”, towards self-sufficiency in its key sectors like steel and energy production.

JSPL intents its contribution towards India’s economic growth by reducing its import dependency on Coal and long term resource security will lead to sustainability of operations. An issuer filing dated October 2023 reaffirmed the company’s focus on shoring up its coal asset base, refining production processes and retaining its pole position in India’s steel sector.