Jindal and Balco bids for coal mines rejected

Speculation of cartlisation during auction process

GN Staff | March 21, 2015


#coal auction   #jindal steel  

The government has rejected bids for four of 33 coal mines put up for auction in the past two months.
Those whose bids have been rejected are Jindal Steel and Power Ltd (JSPL) and Balco, amid speculation of cartelisation during the auction of coal blocks.

Out of the nine blocks, which were examined by the coal ministry for low bids that were termed as “outliers”, the government has accepted five.
“Bids for Gare Palma IV/1, IV/2, IV/3 and Tara coal blocks not accepted,” coal secretary Anil Swarup tweeted.

Talking to Governance Now earlier, coal secretary Swarup had said, “There are nine cases where bids are being re-examined. No one has questioned the process as such. When bids came to us we found that there were certain 'outliers'. There were some bids outside the trend. And we want to understand the reason for that.”

The government can now auction these blocks again, give them back to Coal India or give them to the states.
Jindal Power had emerged as successful bidder for Gare IV/2, Gare Palma IV/3 and Tara Coal blocks while Bharat Aluminium Company(Balco) had emerged as successful bidder for Gare Palma IV/1 coal block.

However, bids for five blocks have been accepted, Swarup tweeted.

Swarup had earlier insisted that the government wasn’t looking at cartelisation aspect at the moment.

There had been reports that some bidders could have indulged in cartelisation to keep the prices low for the concerned mines.
“In the schedule II, we were looking at four mines and in schedule III we are looking at five mines...Prima facie we found that it requires a re-examination, so it has been re-examined that is about all,” Swarup had earlier said.

The coal blocks which did not figure in the list of successful bidders of schedule III mines (ready to produce) were Brinda and Sasai mine (one bid was invited for both the mines), Meral mine, Dumri mine, Tara mine and Mandla South mine.

Comments

 

Other News

Soil Health Cards scheme moves at snail’s pace

An ambitious scheme to provide Soil Health Cards for 14 crore land holdings spread across the country seems to be moving at a painfully slow pace.   Prime minister Narendra Modi on August 21 reviewed the progress and he was informed that 16 States/UTs have completed the first

Major train accidents since May 2014

With two major train accidents in succession this week, we list the major train accidents that have occurred since 2014:    26 May 2014 – 12556 Gorakhdham Express collided with a stationary freight train near Khalilabad station in Uttar Pradesh. 25

“Stressed assets liquidation key to de-clog bank balance sheets”

Swift, time-bound resolution or liquidation of stressed assets will be critical for de-clogging bank balance sheets and for efficient reallocation of capital, said Reserve Bank of India governor Urjit Patel.   Addressing the inaugural session of the “National Conference

Tweaking MSP: Is PDP the right formula?

Should the practice of paying farmers a minimum support price (MSP) for some crops be scrapped? That is what several experts have suggested. This is part of the discourse that follows the recent supreme court advice to the government to formulate a national policy to protect farmers.  MSP ha

Should there be uniform civil code in India?

Should there be uniform civil code in India?

From Shah Bano to Shayara Bano: How Rajiv’s blunder undid secularism

History could have repeated itself as a farce, but in the triple talaq case today, there has been no replay. A historic blunder has been undone, though it has taken three decades. The supreme court has once again taken a stance in favour of individual freedom and against fundamentalism &nda



Video

Punjab and Haryana are on high alert before judgement on baba ram rahim

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter