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AUG 13 2015

Coal auction entangled in legal conflict, two mines go off bidding

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 13th AUG 2015

Coal auctions ran into legal tangles today with the government deferring bids for one mine in Jharkhand where giants like Hindalco, Vedanta and JSPL were in the fray, while another block was withdrawn from the ongoing third round of bidding.

The government deferred the auction of Chitarpur coal mine in Jharkhand because of a court case, which was scheduled to start today.

The other coal block -- Parbatpur Central Coal Mine in Jharkhand -- has been withdrawn from the process on representation that it contains gas.

In a notice to the bidders of Parbatpur Central and Chitarpur Coal Mine the Coal Ministry said, "... bidders may kindly note that the Parbatpur Central Coal Mine is withdrawn from the process of auction..."

"Consequent to hearing dated August 11, 2015 in Writ Petition (C) 7630/2015 (Kolkata Glass and Ceramics Pvt Ltd vs UOI) before High Court of Delhi, the e-auction of Chitarpur Coal Mine shall not be held on August 12, 2015," the notice said.

The date of e-auction of Chitarpur Coal Mine, the notice said, will be intimated later.

"Parbatpur Central mine would not be auctioned as it is a gassy mine and therefore, we have got a representation that it should be withdrawn," an official said.

Companies like Hindalco, Jindal Steel and Power Ltd (JSPL) and Vedanta were in the fray for Chitarpur coal mine after qualifying technical bidding.

Firms like JSW Steel Rashtriya Ispat Nigam, SAIL were in the fray for Parbatpur Central Coal Mine.

The official further said that now there will be auction of only Majra mine in Maharashtra tomorrow.

Companies like ACC, Crest Steel and Power, Emami Cement, Grace Industries, Jaypee Cement and JK Lakshmi Cement are in the race for Majra mine which has extractable reserves of 14.92 million tonnes.

On the first day of the sale of mines yesterday, the government auctioned two blocks in Chhattisgarh and Maharashtra, which fetched it Rs 2,529 crore.

Crest Steel and Power, a Topworth Group entity, emerged as the highest bidder for Bhaskarpara mine in Chhattisgarh that fetched the government Rs 1,817 crore.

The group's arm Topworth Urja & metals also emerged as the highest bidder for Marki Mangli-I mine in Maharashtra.

Marki Mangli-I mine went for Rs 712 crore. Bhaskarpara mine was earlier jointly alloted to Electrotherm (India) and Grasim Industries. Those vying for the coal block included JSPL and Godawari Natural Resources.

The government had earlier said it will auction 10 coal mines for steel, cement and captive power plants. Before this, the government had auctioned 29 coal blocks in two tranches to private companies and garnered over Rs 2 lakh crore.

The Supreme Court in September last year had cancelled allocation of 204 coal mines to companies without auction.

Tags

Delhi Maharashtra Jharkhand Steel Authority of India Ltd. JSW Steel Ltd. Captive Jindal Steel and Power Ltd Coal Gas Coal Mines SAIL Rashtriya Ispat Nigam Vedanta Coal Block JSW Steel Hindalco Kolkata Power Grace Industries India Topworth Urja Umrer CAPTIVE

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