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Bharat Aluminium Company moves Delhi High Court on coal mine bid rejection

Bharat Aluminium Company (Balco), a Vedanta group firm, has approached Delhi High Court against the government's decision to reject the company's winning bid for an auctioned coal mine in Chhattisgarh, people familiar with the matter told ET.

The government last week rejected the company's plea to review the cancellation decision taken in March.

The government had in March rejected bids for three coal blocks, one by Balco and two by Jindal Power, citing low prices and handed over the mines to state-run miner Coal India. The companies then moved the Delhi High Court. The court asked the government to consider Balco's plea afresh while appointing Coal India as a temporary custodian.

Balco had submitted best bid of Rs 1,585 per tonne for Gare Palma IV/1 while Hindalco bagged another mine for steel sector in the same Gare Palma stretch at Rs 3,502 per tonne and Gare Palma IV/4 at Rs 3,001 per tonne.

source: http://economictimes.indiatimes.com