GVK Power files petition in Delhi HC challenging mine auction

GVK Power & Infrastructure today said it has filed a petition before the Delhi High Court challenging the coal block auction process.
"We confirm having filed a writ petition before the Delhi High Court challenging the ... Coal Mines (Special Provisions) Ordinance, 2014 as well as the auction process due to significant under valuation of the compensation due in terms of the Ordinance (Coal Mines (Special Provisions) Ordinance, 2014," the company said in a filing to the BSE.
The company further said that since the matter is sub-judice, it does not wish to comment any further.
The BSE stock exchange had sought clarification from GVK Power & Infrastructure Ltd with respect to media reports that suggested that the company seeks a stay on coal block auctions.

GVK Power (Govindwal Sahib) Ltd's Tokisud North coal block in Jharkhand was among 204 mines whose licences were quashed by the Supreme Court last year.
The mine falls in the schedule II (producing mine) list of the coal blocks to be auctioned.

The government will auction 46 coal blocks to private companies.
Under the schedule II (producing mines) category, 23 blocks will be put on offer. The auction would be held between February 14 and February 22 and the vesting orders will be issued by March 23.
Under the Schedule III (ready to produce mines) category, another set of 23 mines will be auctioned between February 25 and March 5. The vesting orders will be issued by April 2.

The Coal Ministry has already started the process for allocation of 36 mines to PSUs.
Of the 36 blocks listed by the government, 35 will go to power PSUs while the remaining one has been earmarked for a steel PSU.