Coal news and updates

Auctions did not leave big cos out of race: Goyal

May 19: Coal Minister Piyush Goyal has said that aggressive bidding did not leave some companies out of the race in the recently-conducted auction of coal mines.

“It is not correct to say that aggressive bidding has left some big companies out of the race as a large number of successful bidders are well known, large companies,” Goyal said in a written reply in Parliament.

He said that as per the tender document, each bidder was required to conduct its own investigations and analysis and check the accuracy, adequacy, correctness, reliability and completeness of the assumptions, assessments, statements and information contained in the tender document and obtain independent advice from appropriate sources.

In an open auction, bidders are free to bid as per their own assessment of the mines put on auction as well as their financial capability, he pointed out.

Goyal also said that no strictures have been passed by the Delhi High Court regarding the auction methodology.

Rather, the High Court of Delhi in its order dated February 18, 2015 in W.P (C) No. 1384 of 2015 (M/s Sarda Energy & Minerals Ltd vs UOI & Ors) appreciated the auction process and observed that “What has convinced us is the fact that the auction process has worked out well … the process by itself does not appear to us to be arbitrary or irrational. There is, of course, no allegation that the auction process is designed to favour any particular bidder.”