Coal auctions hit legal hurdles; 1 deferred, another withdrawn

Coal block auctions ran into legal and other roadblocks on Wednesday, forcing the government to defer auction of one mine and withdraw another from the third tranche with players Hindalco, JSPL and Vedanta in the fray.

The government deferred the auction of <g data-gr-id="26">Chitarpur</g> coal mine in Jharkhand because of a court case, which was scheduled to start on Wednesday. The other coal block -- <g data-gr-id="25">Parbatpur</g> Central Coal Mine in Jharkhand -- has been withdrawn from the process on <g data-gr-id="23">representation</g> that it contains gas. 

In a notice to the bidders of <g data-gr-id="29">Parbatpur</g> Central and <g data-gr-id="30">Chitarpur</g> Coal Mine the Coal Ministry said, "... bidders may kindly note that the <g data-gr-id="31">Parbatpur</g> Central Coal Mine is withdrawn from the process of auction..."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 <g data-gr-id="34">Chitarpur</g> Coal Mine shall not be held on August 12, 2015," the notice said.

The date of e-auction of <g data-gr-id="35">Chitarpur</g> Coal Mine, the notice said, will be intimated later. "<g data-gr-id="36">Parbatpur</g> Central mine would not be auctioned as it is a gassy mine and therefore, we have got a representation that it should be withdrawn," an official said.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 <g data-gr-id="37">Chitarpur</g> coal mine after qualifying technical bidding. Firms like JSW Steel, Rashtriya Ispat Nigam, SAIL were in the fray for <g data-gr-id="38">Parbatpur</g> Central Coal Mine. The official further said that now there will be auction of <g data-gr-id="40">only <g data-gr-id="39">Ma</g></g><g data-gr-id="39">jra</g> mine in Maharashtra on Thursday.

Companies like ACC, Crest Steel and Power, Emami Cement, Grace Industries, Jaypee Cement and JK Lakshmi Cement are in the race for <g data-gr-id="27">Majra</g> 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.