Lanco bags mine development project by placing negative bid

NEW DELHI: Lanco Infratech on Wednesday said it bagged a contract from Maha Tamil Colleries to develop a coal mine and an associated power project in Chhattsigarh.

The company bagged the contract by quoting a negative bid of Rs 112 per tonne where instead of charging Maha Tamil, they would pay them for the coal used.

A portion of coal mined from the 800 million tonne Gare Pelma sector II coal block will be given to Maha Tamil Collieries while remaining will be used by Lanco Infratech to feed the adjoining power plant. Maha Tamil is a joint venture between Tamil Nadu Electricity Board and Maharashtra State Mining Corporation.

Lanco Infratech pipped seven major companies including Reliance Power, Sterlite Energy, Larsen & Toubro, GMR Energy, GVK and Jindal Power to bag the project.