The government on Tuesday said it was postponing the schedule III coal block auction process by a week to March 4, in view of Delhi High Court’s request. The court’s request comes in the context of the pleas it is hearing on behalf of Bhushan Steel and Monnet Ispat that have challenged the auction rule which mandates that only the top half of the technically qualified bidders are permitted to take part in the financial bidding stage.
The auction process for 20 near-operational mines was to commence from February 25 as per the original calender. Although, the bidding will now take place between March 4 and March 8, the government has stuck to the earlier timeline of April 2 for issuance of vesting order of mines to the successful bidders.
“(Schedule III) Auctions to be held from 4th to 8th March. Announcement of qualified bidders for Schedule 3 Coal Blocks on 2nd March. The entire process of auction of Schedule 3 blocks to be completed by 2nd April,” coal secretary Anil Swarup tweeted.
The Delhi High Court, which on Tuesday heard the plea of Bhushan Steel and Monnet Ispat — both held mines earlier in schedule III lot — asked the government if the auction process could be postponed. The matter will be heard again on Friday.
“We told the court that the auction process could be pushed back only till March 4 and no further. The court agreed to our proposal,” a coal ministry official told FE.
Last week, Delhi High court had junked a similar petition from Sarda Energy and Minerals saying that the bid process was ‘working well’ and was not ‘arbitrary’. The company had objected to the two-phase auction process calling it irrational and arbitrary.
