Dilip Buildcon shares surge after SC confirms Pachwara Central Coal Block deal

NEW DELHI: Shares of Dilip Buildcon jumped over 8 per cent in Friday's trade after the Supreme Court confirmed the appointment of the company and VPR Mining Infrastructure as mine developer and operator for the Pachwara Central Coal Block mine.

The total contract value of the deal stands at Rs 32,156.04 crore, Dilip Buildcon said in a declaration to BSE. Following the development, the stock jumped 8.62 per cent to hit a high of Rs 601.80 on the bourses.

The scrip later pared some of the gains as the session progressed. At 9.50 am (IST), it traded at Rs 573.30, up 3.48 per cent.

The Pachhwara Central Coal Block is located in Pakur district of Jharkhand and was reserved for end use by the power sector. It was allotted to Punjab State Power Corporation (PSPCL) for its captive utilisation. The mineable reserve of the block is 382.1 million metric tonnes, which was to be exploited over 55 years by selection and appointment of mine developer-cum-operator through a competitive bidding process.

The consortium of DBL and VPR emerged as L1 bidder in the reverse auction conducted by PSPCL and consequently the letter of award was issued in its favour.

On Tuesday, a Supreme Court Bench said the decision was taken in accordance with Section 11 of the Coal Mines Act of 2015.

"As the result of the said judgment, DBL-VPR Consortium has been conferred with the absolute rights to undertake the mining development-cum-operation works at the Pachhwara Central Coal Block mine," Dilip Buildcon said.