Coal India wins Odisha iron ore block bid in diversification push
Coal India is declared preferred bidder for Odisha's Gadadharpur iron ore block, marking its entry into non-coal minerals.
State-owned Coal India Limited (CIL) has been declared the preferred bidder for the Gadadharpur Iron Ore Block in Odisha's Kendujhar district, signalling the company's first major step into minerals beyond its traditional coal business.
The Odisha government confirmed the selection through an auction process, according to a regulatory filing by the Maharatna public sector undertaking. The block, currently at the G3 exploration stage, holds estimated resources of 288 million tonnes.
Under the terms of the auction, Coal India will pay a premium of 114.05 per cent of the value of dispatched minerals to the state government. This figure represents the auction premium linked to mineral value and is not an upfront acquisition cost.
The company has one year to formalise its status as the successful bidder, with the mining lease deed to be executed within three years. The filing did not disclose the expected investment, production capacity, or a timeline for starting iron ore output.
Coal India also clarified that neither its promoter nor group companies have any interest in the awarding entity, confirming the transaction does not fall under related-party rules. The move underscores the company's strategy to diversify its revenue streams beyond coal mining.