India's Shyam Metalics and Energy Limited (SMEL) has been declared the successful bidder for the Phutumara coal block in the central state of Chhattisgarh, through its associate company Alom Solar Private Limited, a company statement said on Wednesday, October 14.
The block covers around 7.32 sq km and has estimated coal reserves of about 170 million mt, it said in the statement.
Mining operations and coal production are expected to begin in July 2027, according to the company.
The investment is part of the group's backward integration strategy to ensure a stable, long-term and cost-effective coal supply for its captive power generation and steel manufacturing operations, it said.
Access to the reserves is expected to strengthen raw material security, improve operational self-sufficiency and reduce dependence on external coal supplies, it added.
SMEL's product mix also includes iron ore pellets, rebar, structural steel, ferroalloys and aluminum foils.
