Millennium Post

Centre re-examining bids for nine auctioned coal blocks

Expecting the details would emerge in “a couple of days” on what actually transpired during the bidding process for these mines, Coal Secretary Anil Swarup insisted that the government wasn’t looking at cartelisation aspect at the moment.

There have 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 told news channel CNBC TV18.

He, however, reiterated that the government was only re-examining and not reviewing, “because there was no decision taken. Review happens when you take a decision”. The bids of four coal blocks of the schedule II mines (ready to produce) which are being re-examined are Gare Palma IV 2, Gare Palma IV 3, Gare Palma IV-1 and Marki Mangli III.

Jindal Steel and Power (JSPL) was the successful bidder for Gare Palma IV 2 and Gare Palma IV 3 mines, while Balco successfully bid Gare Palma IV/1 mine and BS Ispat bagged Marki Mangli III mine.

The coal blocks which do not figure in the list of successful bidders of schedule III mines are Brinda and Sasai mine (one bid was invited for both the mines), Meral mine, Dumri mine, Tara mine and Mandla South mine. Asked why re-examination was required, he said: “On the face of it, we felt that the bids that were offered were not at the same levels as similar blocks in the same group. However, that was not a decision per se. That was first impression and that needed to be examined and that is why it has been examined.”

On whether the government has noticed any evidence of cartelisation, Swarup said: “As I said, this is a process underway. I would not like to comment on what is going on the file. A decision will be taken in couple of days and you will get to know what has happened.”

JSPL shares tank over 8.5%; m-cap down Rs 1,482 cr

Mumbai: Shares of Jindal Steel & Power Ltd witnessed massive selling pressure on Tuesday, falling by over 8.5 per cent amid reports that government may reject company’s bids for two coal blocks in

After falling 17.55 per cent to Rs 156.85 in intra-day trade on the BSE, shares of the company finally ended 8.52 per cent lower to settle at Rs 174.05. At the NSE, the stock plunged 8.37 per cent to settle at Rs 174.50. The stock was the biggest loser among the 50-Nifty scrips. Following the sharp decline in stock price, company’s market value dipped Rs 1,482 crore to Rs 15,923.90 crore. In terms of volume, 42.04 lakh shares of the company changed hands at BSE during the day.
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