Govt rejects Balco's plea for accepting bid for C'garh mine

The government has rejected the request of Vedanta Group firm Balco to accept its bid for the Gare Palma IV/1 coal mine in Chhatisgarh in which the company had emerged as the highest bidder during the auctions held earlier this year.
The government had made Coal India the custodian of the Gare Palma IV/1 coal mine in Raigarh district of Chhatisgarh.
The development comes close on the heels of the third leg of coal mines auction which will kick-off tomorrow with firms like JSPL, Hindalco, Vedanta and JSW Steel in the fray for five blocks that the government has put up for bidding.

"Bharat Aluminium Company Ltd (Balco) had made a representation last month asking the government to accept the company's bid for Gare Palma IV/1 mine in which it had emerged as highest bidder," a Coal Ministry official said.
However, the government rejected Balco's plea stating that "there was no merit in it", the official said.
A query sent to the company on the same went unanswered.

Earlier this year, the Coal Ministry had rejected the bids of some of the coal blocks, including Gare Palma IV/1 mine, for which Balco had emerged as the highest bidder.
Later, the government made Coal India the custodian of Gare Palma IV/1 mine.

The government, which is beginning with the auction of third lot of mines tomorrow, has put on offer two blocks on the first day. The blocks on offer are Marki Mangli-I mine in Maharashtra and Bhaskarpara mine in Chhattisgarh.
The third tranche follows the government garnering over Rs 2 lakh crore in the first two phases of mines auction earlier this year.
The companies in the race for Marki Mangli-I mine are Grace Industries Ltd, Lloyds Metals and Energy Ltd and Topworth Urja & Metals Ltd.
Firms vying for Bhaskarpara mine are Jindal Steel and Power Ltd (JSPL) and Crest Steel and Power Pvt Ltd and Godawari Natural Resources Ltd.

The government has so far auctioned 29 coal blocks in two tranches to private companies and garnered over Rs 2 lakh crore, surpassing CAG's loss estimates of Rs 1.86 lakh crore in allotment of mines earlier without auction.
The Supreme Court in September last year had cancelled the allocation of 204 coal mines that were given "arbitrarily".