Coal auction process won't be delayed: Goyal on HC order

With the Delhi High Court asking for removal of three coal blocks from the auction list, Union Minister Piyush Goyal today said the government respects the ruling and assured that the auction process would not be delayed.
In a relief for Jindal Steel and Power Ltd (JSPL) and its promoter Naveen Jindal, the court today directed a technical committee to review its own decision to change the end-use of two coal blocks earlier alloted to the company and removing the mines from the auction.
"We respect every judgement of the Court and I am sure department would be assessing what they have to do next in the matter," Goyal told reporters on the sidelines of Annual Day function of the Institute of Chartered Accountants of India.

When asked will there be delays in the auction of coal blocks, the coal and power minister said: "Not at all. Everything goes on as usual."
A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva took out Utkal B1 and B2 blocks in Odisha and Gare Palma IV/6 in Chhattisgarh, from the auction process, saying that while changing end-use of these blocks to power sector, the aspect of its adverse impact on steel sector "has not been considered".
Coal Secretary Anil Swarup also said the judgement of the High Court in the Jindal Steel case will not impact the auction process of schedule II mines (producing mines) that is underway.

"Pursuant to the order the concerned mines are being referred to the technical committee," he said.

The Delhi High Court also directed the committee, which had been set up to classify coal blocks as well as formulate criteria for their auction and allotment, to review its decision to merge Utkal B1 and B2, saying "there was no application of mind".
JSPL had been allocated Utkal B1 for operating a steel unit and Gare Palma IV/6 for a sponge iron industry. However, the allocations, along with with others, were cancelled by Supreme Court last year.
JSPL had contended that change of end-use of these blocks from steel and iron to power has prevented them from bidding for them, which could result in their investments of over Rs 24,000 crore, to set up units close to these mines, going waste.

Government, on the other hand had contended that end-use of both blocks was changed in view of the "energy security of the country".
Disagreeing with the government's reason for changing end-use, the bench said the expression "energy security of the country" refers to the coal reserves and not to the power sector and added that power can be generated through various other sources - water, wind, nuclear, solar, etc.
The government has put up 46 coal blocks for the auction, which will take place this month.