Adani Enterprises along with its wholly owned subsidiary company, Gare Palma II Collieries (GPIICPL) has signed Coal Mining Agreement (CMA) with Maharashtra State Power Generation Company (MAHAGENCO) for development and operation of Gare Palma Sector II Coal Mine.
The Ministry of Coal, Government of India has allocated Gare Palma Sector II Coal Mine to MAHAGENCO 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 8- 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 of 8-operation of Gare Palma II coal mine in 2016. After reverse auction Adani Enterprises (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 8- 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.