Adani Enterprises, Ahmedabad based diversified company 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.

Ministry of Coal, Government of India (Gol) allocated Gare Palma Sector II Coal Mine to Maharashtra State Power Generation (MAHAGENCO) vide allotment order dated Aug.31, 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 and 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 (AEL) 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 MDO has now become 104.20 MTPA.

Shares of the company gained Rs 30.9, or 2.79%, to settle  at  Rs 1,138.20.  The total volume of shares traded  was  1,108,683 at  the BSE (Monday).