Adani Enterprises Limited signs coal mining agreement with MAHAGENCO

Adani Enterprises Limited alongwith its Wholly Owned Subsidiary company, Gare Palma II Collieries Private Limited ("GPIICPL") has signed Coal Mining Agreement ("CMA") with Maharashtra State Power Generation Company Limited ("MAHAGENCO") for development and operation of Gare Palma Sector II Coal Mine.

Ministry of Coal, Government of India ("Gal") allocated Gare Palma Sector II Coal Mine to Maharashtra State Power Generation Company Limited ("MAHAGENCO") vide allotment order dated 31.08.2015 under Coal Mines (Special Provisions) Act. 2015. at Raigarh district of Chhattisgarh state. The Coal block is allotted for development, operation and captive consumption of coal to its end use thermal power plants located at Koradi, Chandrapur & Parli.

As per the approved Mining Plan the peak rated capacity of GP-II Coal Mine is 23.6 MTPA with total mineable reserve of 553.177 MT for opencast mine.

MAHAGENCO has floated tender for selection of Mine Developer and Operator for development & operation of Gare Palma II coal mine on 31.03.2016. After reverse auction Adani Enterprises Limited ("AEL" or "the Company") emerged as L-1 bidder. MAHGENCO issued Letter of Acceptance (LOA) to the Company. As per the tender provision. the Company has formed 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, Contractual Capacity of AEL as an MOO has now become 104.20 MTPA.

Shares of ADANI ENTERPRISES LTD. was last trading in BSE at Rs.1107.3 as compared to the previous close of Rs. 1030.85. The total number of shares traded during the day was 571877 in over 12881 trades.

The stock hit an intraday high of Rs. 1115.3 and intraday low of 1034.95. The net turnover during the day was Rs. 619994936.

Source : Equity Bulls

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