Gare Palma IV-7 mine in Chhattisgarh, earmarked for the non-power sector, was the most sought after one in the current lot put on auction in the first tranche.
While accepting that the company got the Gare Palma IV/7 coal block relatively expensive, Sandeep Jajodia, chairman and managing director, Monnet Ispat says it was important that the company run the plant than shut it altogether.
Speaking to CNBC-TV18, Jajodia says the mining cost of the Gare Palma IV/7 block is relatively low and hence, is a good buy for the company.
Read: Monnet Ispat & Energy wins coal block in Chattisgarh
Furthermore, he says the logistics will not be an issue at all as the company previously owned the block right night to GP IV/7.
“The block is also just 55 km away from the end-use plant, so it’s a good buy for us,” he adds.
Transcript to follow soon.
Monnet Ispat stock price
On February 23, 2015, at 13:11 hrs Monnet Ispat was quoting at Rs 63.40, up Rs 7.35, or 13.11 percent. The 52-week high of the share was Rs 161.55 and the 52-week low was Rs 54.30.
The latest book value of the company is Rs 404.80 per share. At current value, the price-to-book value of the company was 0.16.