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Jindal Power Ltd has got a minor breather from the Delhi High Court in the matter of the two coal blocks it had bid for in the e-auction of 2015; the bid was rejected over the low rate quoted.
The bank guarantee given for the two blocks is due to expire by the middle of next month. JPL has asked the HC to let it withdraw the guarantee. The amounts for Tara (in Bengal) and Gare Palma IV/2&3 (in Jharkhand) are Rs 13.73 crore and Rs 11.82 crore, respectively.
The e-auction of blocks in 2015 was held to re-allocate those cancelled earlier by the Supreme Court. JPL had won these two by way of the lowest bid; both blocks were for power generation. However, the ministry of coal did not approve, saying the amounts were too little. JPL petitioned the HC and the court had in September 2015 reserved its verdict.
The matter came before the HC on Wednesday as an interim application filed by Jindal Power, seeking release of the bank guarantees, scheduled to expire on February 15 and 20, respectively. Judge Badar Durrez Ahmed asked senior advocate Parag Tripathi, appearing on behalf of Jindal, if the guarantees could be extended till February 28, such that the main matter could be adjudicated without any interference or change in status. As the Jindal counsel accepted the suggestion without contest, the court recorded his undertaking and passed the order appropriately.
Government officials say with this development, they are looking forward to disposal of the case by February-end.
Bharat Aluminium, whose bid faced a similar fate, had withdrawn from the case last year and given up on the block in question.
