Auction coal from Chhattisgarh mines and let JPL bid: HC to CIL

Delhi High Court on Friday directed Coal India Ltd (CIL) to dispose of the coal it was mining from two Chhattisgarh mines through a fresh e-auction in which Jindal Power Ltd (JPL) was permitted to participate. A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva issued the direction on the plea of CIL seeking direction for disposal of coal being mined by it from Gare Palma IV/2 and IV/3 mines.

The court also issued notice to JPL and the Centre and sought their responses by August 11 on CIL's plea which has also sought permission to sell coal mined by it to National Thermal Power Corporation (NTPC) or others with whom it has a fuel supply agreement. CIL sought permission to dispose of coal being mined by it from the two mines, saying it does not have space to store the mineral. The PSU moved the application as the high court on May 27 had kept in abeyance its letter cancelling the e-auction in which JPL had won 49,000 metric tonnes of coal to be mined from the two mines. Senior advocate Sandeep Sethi, appearing for CIL, told the court the problem was that after it received environmental clearance, it had commenced mining and now the mineral was accumulating at the site with no space to store it.

CIL's application was filed in the main petition of JPL which has challenged a May 16 letter by which the PSU had cancelled the e-auction. CIL had said it had cancelled the e-auction as it was yet to get the consent to operate the mines <g data-gr-id="29">and</g> therefore, mining had not commenced. It had also submitted that as of now it has not entered into any arrangement with NTPC to supply coal for the PSU's Patna unit. Earlier, the court had termed as "absurd" CIL's reason for cancelling the e-auction due to delay in getting consent to operate the two mines. JPL had initially challenged the decision by way of an affidavit for quashing of a March 20 order of the government cancelling the bids of the company and Bharat Aluminium Company (Balco) for four coal blocks, amid speculation of <g data-gr-id="40">cartelisation</g>.

Thereafter, it had filed a fresh petition on the court's direction. JPL had in its affidavit contended that while 49,000 mt of non-coking coal won by it was cancelled citing production issues at Gare Palma IV/2 and IV/3 mines, 2.5 lakh tonne per month of coal from same area was offered to NTPC on 'as is where is basis'.