Amid speculation of cartelisation during their bidding process in the coal block auctions, the government is re-examining the bids for nine coal blocks, including those where Jindal Steel and Balco emerged the top bidders, and a final decision on their fate would be taken by this weekend.
Coal Secretary Anil Swarup, though has said that the government wasn’t looking at cartelisation aspect at the moment and it was only re-examining and not reviewing, “because there was no decision taken. Review happens when you take a decision.” He further stated that if some irregularities are found the government can re auction the mines, it can allot the mines to the state or it can give the blocks to Coal India.
The bids of four coal blocks of the schedule II mines (ready to produce) which are being re-examined are Gare Palma IV 2, Gare Palma IV 3, Gare Palma IV-1 and Marki Mangli III, while for schedule III mines are Brinda and Sasai mine (one bid was invited for both the mines), Meral mine, Dumri mine, Tara mine and Mandla South mine.
Earlier, there were reports that some bidders could have indulged in cartelisation to keep the prices low for the concerned mines. So far, a total of 33 coal blocks have been auctioned in two tranches, while in the first lot 19 coal mines were auctioned, in the second lot 14 coal blocks went for sale.