Coal auction hits legal, other roadblocks

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 Chitarpur coal mine in Jharkhand because of a court case, which was scheduled to start on Wednesday.

The other coal block -- Parbatpur Central Coal Mine in Jharkhand -- has been withdrawn from the process on representation that it contains gas.

In a notice to the bidders of Parbatpur Central and Chitarpur Coal Mine the Coal Ministry said, "... bidders may kindly note that the Parbatpur Central Coal Mine is withdrawn from the process of auction..."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 Chitarpur Coal Mine shall not be held on Wednesday," the notice said.

The date of e-auction of Chitarpur Coal Mine, the notice said, will be intimated later.

"Parbatpur Central mine would not be auctioned as it is a gassy mine and therefore, we have got a representation that it should be withdrawn," an official said.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 Chitarpur coal mine after qualifying technical bidding.

Firms like JSW Steel, Rashtriya Ispat Nigam, SAIL were in the fray for Parbatpur Central Coal Mine.

The official further said that now there will be auction of only Majra mine in Maharashtra on Thursday.