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Govt rejects coal bids by JSPL, Balco

In a late night tweet Coal Secretary Anil Swarup said "Bids for Gare Palma IV/1, IV/2, IV/3 and Tara coal blocks not accepted."

The bids of Jindal Steel and Power Ltd and Balco have been rejected by the government amidst the speculation of cartelisation during the auction which was held recently.

Bids for nine recently auctioned coal blocks, which includes those where Baclo and JSPL emerged top bidders were being re-examined by the government.

Anil Swarup tweeted "Government takes decision on bids for 9 coal blocks,.

Bharat Aluminium Company (Balco) had emerged as successful bidder for the Gare Palma IV/1 coal block. JSPL emerged as successful bidder for Tara Coal, Gare IV/2 and Palma IV/3 blocks. Swarup informed that the bids for five blocks have been accepted.

Earlier, he had emphasized on the fact that the government was not analysing the cartelisation aspect for now. According to reports bidders may have indulged in cartelisation for keeping the prices of the concerned mines low.

Swarup had said "In the schedule II, we were looking at four mines and in schedule III we are looking at five mines...Prima facie we found that it requires a re-examination, so it has been re-examined that is about all."

The bids for Gare Palma IV 2, Gare Palma IV 3, Gare Palma IV-1 and Marki Mangli III were being re-examined.

Brinda and Sasai mine , Meral mine, Dumri mine, Tara mine and Mandla South mine were the coal blocks which did not figure in the successful bidders list of mines belonging to Schedule III.

The secretary said that the government "has not looked at any such thing as cartelisation or anything of such sort." He added "I have used the word 'outliers' There is a pattern and if somebody falls outside that pattern that needs a examination."

He also said "Whether it is a cartelisation or not it not something which I can say as of now. We are certainly not examining these aspects. We are examining if there is an outlier the reason for it and then we will take a call." Till now 33 blocks have been auctioned in two tranches.