There is no "conclusive proof" of collusion in bidding for two mines involving JSPL, although the pattern of bids was in stark contrast to those mines meant for the power sector, the Nominated Authority to re-examine the offers for these blocks has found.
According to sources, the closing bid in respect of Gare Palma IV/2 & IV/3 coal blocks, only one bid was made by Jindal Power Ltd (JPL), though there were four distinct qualified bidders.
The Nominated Authority had overseen the coal blocks auction process.
Citing a report submitted by the Nominated Authority (NA) -- Coal Joint Secretary Vivek Bharadwaj, sources said Adani Power Maharashtra, GMR Chhattisgarh Energy Ltd (GMRCEL) and Jindal India Thermal Power Ltd were the qualified bidders, the companies did not bid.
"There is no conclusive proof available with NA indicting any collusive bidding... The Ministry of Coal may take an appropriate decision in the matter on the basis of facts submitted," as per the report.
"While bidding for similar power sector mines was aggressive and the bids continued much beyond the initial scheduled period of two hours, for these mines only one bid was received," the source said, quoting the report.
It is in sharp contrast to bids made in respect of other mines earmarked for power sector that ranged from 115 to 264, the source added.
It is yet to be ascertained how smaller mines in terms of extractable reserves have fetched higher prices, while Gare Palma IV/2 & IV/3 mines having the maximum reserves has been bid for the lowest amount.
The closing bid price for Gare Palma IV/2 & IV/3 coal blocks in Chhattisgarh that have balance extractable reserves of 155.49 million tonnes -- the highest reserves among all the power sector blocks that were put on sale -- was Rs 108 per tonne.
"It would be reasonable to expect a higher bid price," said the source, quoting the report.
Pointing out how the bidding for the block went against conventional logic, the source said: "Had GMRCEL won Gare Palma IV/2 & IV/3 coal mines, 92.04 per cent of its requirement and 61.6 per cent of its coal entitlement would have been met from this mine."
Similarly this mine would have met 93.76 per cent of the coal requirement of Adani Power Maharashtra Ltd and 98.46 per cent of the coal requirement of Jindal India Thermal Power Ltd, the two other qualified bidders for this mine.
"Both of them are not closing bidder in any of the other schedule-II (producing mines) coal mine," the source added.
