Despite several coal reserves facing litigations and the looming possibility that more court cases could delay the entire ongoing process of coal blocks auction, the Government on Thursday expressed confidence that it would be able to bid out all under production coal blocks before March 31, 2015.
Announcing that 134 out of the total 176 applications which the Government had received in response to the auction of 23 under production coal blocks, were found to be technically valid, Coal Secretary Anil Swarup said that despite some court cases challenging the Coal Mines (Special Provisions) Ordinance, the auction process will go on as per schedule, as the Government has ample number of blocks to offer.
Jindal Steel and Power ltd (JSPl), Bharat Aluminium Co ltd (Balco), Essar Power M P ltd, GMR Chhattisgarh Energy ltd, GVK Power, JSW Energy, Reliance Cement Company ltd, Ambuja Cement, Hindustan Zinc, Sesa Sterlite are some of the major companies whose bids have been found to be technically sound.
“We are confident of meeting the deadline of March 31, 2015 for completing the auction process, as there are adequate number of blocks which are on offer,” Swarup said.
These 134 applicants will be able to participate in the e-auction process of the under production blocks, which will take place between February 14 and February 22, 2015.
At the same time he said that in case some mines are not auctioned out by March 31, 2015, then these will be given to custodians, which will be appointed later by the Government. These custodians will not be involved in direct mining of the said blocks, but will ensure that they remain under production till the time they are put up for auction again, Swarup informed.
Sources pointed out that Coal India ltd (CIl) and Singareni Collieries Company ltd (SCCl) could be the custodians, as these are the only two state-owned companies involved in coal mining.
“Out of the 176 applications we received, 134 are found to be technically valid,” Swarup told reporters. He added though that consequent to an interim order of Jabalpur High Court, the auction of two mines has been put on hold in Schedule - II. These are Gotitoria East and Gotitoria West.
The 23 under production blocks are placed by the Government in Schedule - II of the auction list.
The Coal Ministry, Swarup said, had put both the aforementioned blocks in the unregulated sector but the Court directed that they be considered for the regulated sector.
The Government has received eight bids for Gotitoria East and Gotitoria West mines in Madhya Pradesh from companies like ACC, BlA Power, BS Ispat, Godawari Power and Ispat, OCl Iron and Steel, Prism Cement, Reliance Cement and Trimula Industries.
The Secretary further said that in case of Schedule - III mines (ready to produce) there are three mines that have been taken out of auction process consequent to the order of the Delhi High Court.
“We are referring this to a technical committee which will re-examine it in the context and as per the directives of the High Court,” Swarup said, adding that in all, five blocks have been impacted by two court orders.
The Supreme Court had in September 2014 cancelled allotment of 204 mines since 1993, terming the allotment as “arbitrary and illegal”.
Under the Schedule II (producing mines) category, the auction of the coal blocks would be held between February 14 and February 22 and the vesting orders will be issued by March 23.
Swarup further said that instead of 36 coal mines the Government has decided that it will now allot 45 coal blocks to the PSUs.