Clouds of uncertainty hover over the much anticipated e-auction process of 21 under production coal blocks which is scheduled to start on February 14, as the Delhi High Court on Friday in a major relief to Sesa Sterlite ltd, set aside its disqualification by the Government from bidding for six coal blocks in Chhattisgarh and Jharkhand.
Though this will allow Sesa Sterlite to participate in the bidding of the six blocks namely Gare Palma IV/1, IV/4, IV/5, IV/7 and Chotia (all in Chhattisgarh) and Kathautia in Jharkhand, highly placed sources within the Government told The Pioneer that the Coal Ministry will go ahead with the e-auction process which is to start from the morning of February 14.
While Coal Ministry sources said that so far there is no change in the e-auction schedule of the under production blocks as the judgement in the matter is awaited, a section within the ministry was keeping its fingers crossed on the fate of the auction process, considering the deluge of litigations which have sprung up over the past few weeks challenging the provisions of the Coal Ordinance.
Official sources on their part added that any final call on the e-auction process will be taken after the judgement, as the initial judgement will not have any impact on the e-auction process. The aforementioned six reserves are under production blocks (placed in Schedule II by the Government) and come in the list of 21 reserves which will be e-auctioned between February 14 and February 22, 2015.
“let bids of Sesa Sterlite be considered in the facts and circumstances of the case,” a bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva said. “Can’t understand what is happening with this coal auction,” the bench also observed. Sesa Sterlite and five other companies have filed petitions challenging their disqualification as well as the bidding procedures in coal auction process. Sesa Sterlite has challenged its disqualification from bidding for five blocks in Chhattisgarh and one in Jharkhand for their nine 135 mega watt captive power plants. The coal blocks include Gare Palma IV/1, IV/4, IV/5, IV/7 and Chotia in Chhattisgarh and Kathautia in Jharkhand.
Apart from Sesa, Sarda Energy and Minerals ltd and Usha- Martin have also moved court seeking reasons for their disqualification from the ongoing auction process. If this was not enough, during the course of an action packed Friday, the Delhi High Court sought the Government’s response by March 23 on the pleas of Jindal Steel and Power ltd (JSPl) as well as Jindal Power ltd (JPl) challenging the 2014 Coal Ordinance provisions regarding determination of compensation payable to previous allottees towards mining infrastructure and land value of the blocks.
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw while issuing notice to the Government and seeking its response by March 23, also said that auction of Gare Palma IV/2, IV/3 and IV/4 blocks in Chhattisgarh would be subject to the final outcome of the Jindal group companies’ pleas. The three coal blocks were earlier allotted to Jindal but the allocation was cancelled by the Supreme Court in August last year.
These reserves too are under production blocks and are part of the 21 blocks which go for e-auction between February 14 and February 22, 2015. When asked about this particular case, official sources indicated that the compensation issue will not have any impact on the auction process. They added that the Jindal case will only impact the amount to be paid to the previous allottee by the subsequent allottee.