Delay in re-examination of eight coal block bids unfair, says Assocham

Industry chamber Assocham on Friday termed "unfair" the central government's decision to defer conferring the winners of eight coal blocks as successful bidders in the ongoing auction and urged Coal Minister Piyush Goel to expedite the process.

"Delay in awarding coal blocks to highest/lowest bidders is not only causing uncertainty to the industry and grave concern for investors but it is also giving vested forces an opportunity to question transparency and justness of the auction process," Assocham secretary general D.S. Rawat said in a statement.

The association termed the government's decision to supposed re-examination of certain bids submitted in the coal auction process as "unfair" and called for a "fair treatment" to those who have "contested fairly and in good faith".

"Decision to re-examine bid prices through prism of trend set by 'unexpectedly high bids' should be reviewed," Rawat said.

According to the industry lobby, each coal block has different characteristics and bidding would have been dependent on factors unique to the particular coal block like peak rated capacity, gross calorific value of coal, extractable reserves, mining cost and most importantly logistics to transport the coal to end use plant of bidders from coal mine.

"Subdued interest in some coal blocks leading to their subsequent withdrawal from auction process is an indicator of relative utility of a particular coal block", the body said in the letter to Goyal.