Delhi HC dismisses challenges to club non-regulated sectors in coal auctions

The challenges were made by Utkal Coal, Monnet Ispat and Energy, Jayaswal Neco Industries and Bhushal Power and Steel for almost an year-and-a-half

The Delhi High Court on Wednesday dismissed petitions filed by four mineral companies, challenging a move by the Ministry of Coal to amalgamate all sectors (except power) under a single category for the purpose of coal block auctions. 

“The writ petitions are dismissed” said the bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva in their one line judgment, after having reserved their decision on challenges made by Utkal Coal, Monnet Ispat and Energy, Jayaswal Neco Industries and Bhushal Power and Steel for almost an year-and-a-half. 

The division bench rejected the contentions of the private entities that the classification had violated the protection afforded to iron and steel enterprises under a 2014 coal ordinance and resulted in an undue advantage to aluminum companies.

The petitioners had questioned the basis of the unified end-use classification for the non-regulated sector, which they claimed had skewed the bidding process by creating competition for mining rights between unequal players.

Hindalco, the successful bidder for the Gare Palma IV/5 mine in Chattisgarh had opposed the pleas by claiming that the petitioners were merely attempting to seek an unfair reservation in the already concluded allocation process,