Coal auctions skewed: iron & steel companies to HC

Iron and steel companies today argued before the Delhi High Court that the Centre's decision to club all end-uses, except power, under unregulated sector has led to a "skewed" bidding process in which unequals are competing with each other for mines.
The submission was made before a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva by Bhushan Steel and Power Ltd, Utkal Coal Ltd and Monet Ispat and Energy Ltd which have challenged the Coal Ministry's decision to club all other sectors, except power, under one category.
The bench listed the companies' pleas for further hearing on March 4 and also issued a notice to the Coal Ministry and sought its response, on that date, on the plea of D B Power Ltd which has challenged merger of two blocks - Durgapur-II Taraimar and Durgapur-II Sariya - in Chhattisgarh.

Bhushan, Monet and Utkal, represented by senior advocates Kapil Sibal and P Chidambaram, have challenged the auction rules of two-stage bidding in which 50 per cent of the players are eliminated in round one as well as multiple bidding by a company.
They have said that the 50 per cent elimination criteria combined with the classification of all sectors, except power, under unregulated sector, is "wrong".
"Both spirit and methodology of classification is wrong. Unequals being treated equally has lead to bidding process becoming skewed and that is why 50 per cent cut-off is discriminatory," Sibal and Chidambaram said.
The submission was made in support of their argument that due to the "wrong" classification core sectors like iron and steel, which are to be protected as per 2014 coal ordinance, are losing out to aluminium companies in the auction.