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Adani Enterprises today started coal production at its Parsa East-kanta Basan mine in Chhattisgarh where it is the mine developer and operator (MDO). The mine is owned by Rajasthan Rajya Vidyut Utpadan Nigam.
“This is the first amongst the four MDO contracts bagged by Adani Enterprises and marks the beginning of Adani group’s resources business vertical in India. The company has outlined a phased capital outlay of Rs 3,000 crore for the entire block,” the company said, in a statement. The MDO contract was awarded to Adani in 2007.
The Chhattisgarh coal mine has reserves of around 450 million tonnes. The mine is also expected to produce 15 million tonnes per annum. This coal will fire power plants in Rajasthan.
The company claims that this development will make them the largest private coal miner with access to produce coal of up to 90 million tonnes and reserves of over three billion tonnes over next 30 years, enough to produce about 18,000 megawatts of electricity by state electricity boards.
Adani has four such mine development and operator contracts “Adani aims to produce 200 million tonnes of coal by 2020 across global assets,” the company said. The group has coal assets in Australia, which it had purchased from Linc Energy in 2010.
The stock of Adani Enterprises fell by 1.4% in today's trade to Rs 210.5.
