On August 18, 2025, the Ministry of Coal (MoC), Government of India, officially declared Mivaan Steels Limited, a wholly owned subsidiary of JSW Steel Limited, as the successful bidder in the auction process for the Rajgamar Dipside (South of Phulakdih Nala) coal block located in Chhattisgarh. The announcement was formally disclosed by JSW Steel Limited to the National Stock Exchange of India (NSE) and BSE Limited on August 21, 2025, in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The coal block auction was held on July 30, 2025, and after a competitive bidding process, Mivaan Steels Limited emerged as the highest bidder. The company’s final winning offer was pegged at 31.50% of the average monthly coal prices, benchmarked against the National Coal Index (NCI) published by the Ministry of Coal. This pricing mechanism aligns with the transparent and competitive framework adopted by the Government of India to ensure fair allocation of natural resources.

Importance of the Rajgamar Dipside Coal Block

The Rajgamar Dipside (South of Phulakdih Nala) coal block is a strategically significant asset, located in the mineral-rich state of Chhattisgarh, which has been a hub for India’s coal production. Securing this block is a major step for JSW Steel, as coal remains a crucial raw material in the production of steel through the blast furnace route. The acquisition strengthens JSW’s long-term resource security, ensuring stable supply of coal, which is vital for cost efficiency, energy security, and uninterrupted steel manufacturing operations.

Next Steps for JSW Steel and Mivaan Steels

Following the successful bidding outcome, JSW Steel has confirmed that its subsidiary will now undertake all necessary actions as outlined in the tender documents. These include:

• Obtaining the Letter of Intent (LoI) from the Ministry of Coal.

• Securing all statutory and regulatory clearances, which include environmental approvals, forest clearances, and mining plan approvals.

• Execution of the Coal Mine Development and Production Agreement (CMDPA) with the Ministry of Coal.

• Commencing coal mine development and eventual commercial production in a phased manner.

JSW Steel also informed the exchanges that the delay in disclosure was due to delayed communication of the result by its subsidiary company, Mivaan Steels Limited.

Strategic Significance for JSW Steel

JSW Steel, one of India’s largest integrated steel producers, has been consistently working towards securing its raw material linkages to reduce dependence on external sources. With coal being a key input for steel production, this acquisition aligns with the company’s broader strategy to strengthen backward integration and enhance its operational resilience.

The allocation of coal blocks through auction by the Government of India is a part of its broader policy to ensure transparent resource allocation, reduce import dependency, and promote self-reliance in energy and industrial inputs. For JSW Steel, winning this coal block is expected to enhance its competitive edge in the domestic and global steel markets by reducing costs and ensuring uninterrupted supply of coal for its steel plants.

Impact on Shareholders and Investors

The disclosure assures investors and shareholders of JSW Steel that the company is actively pursuing steps to secure long-term sustainability. By winning this coal block, JSW Steel positions itself to reduce future raw material risks, thereby improving financial stability and shareholder value. The move also demonstrates adherence to SEBI disclosure norms, ensuring transparency and timely communication with the market.

This development also underlines JSW Steel’s role as a significant participant in India’s steel and mining sectors, highlighting its contribution to the ‘Atmanirbhar Bharat’ initiative, which promotes self-reliance in critical resources.

Conclusion

The successful acquisition of the Rajgamar Dipside coal block in Chhattisgarh by Mivaan Steels Limited marks a milestone in JSW Steel’s ongoing expansion and raw material security strategy. With the company set to proceed with regulatory formalities, CMDPA execution, and eventual commencement of mining operations, this move is expected to bolster JSW Steel’s operational efficiency and strengthen its position in the competitive steel industry.

By ensuring a reliable supply of coal through captive sources, JSW Steel enhances its ability to meet growing domestic and international demand, solidifying its reputation as a leader in India’s steel sector while complying with regulatory transparency and maintaining investor confidence.

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