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Govt may give 9 mines being re-examined to Coal India

The government is likely to give nine coal mines to state-run Coal India Ltd (CIL) in case the ongoing scrutiny establishes that there was cartelisation in the recent auction for these blocks.

The government is re-examining the bids for nine coal blocks, including those where Jindal Steel and Balco emerged as the top bidders, and a final decision on their fate would be taken by this weekend -- amid speculation of cartelisation during their bidding process.

"The likelihood is that they (the coal blocks) may go to Coal India," said a source privy to developments.

However, the government is yet to take a final view with regard to the coal blocks, said the source.

Coal Secretary Anil Swarup had told PTI yesterday that the options that could be explored for these mines, after 're-examination' of the bids, would include a fresh auction for those mines, allotting them to the state or giving those blocks to state-run Coal India.

"By this week-end there would be a decision on the nine coal blocks which are being re-examined by the government," Swarup had said.

Asked if there is a possibility that government can go for re-auctioning of these blocks, Swarup said: "Anything can happen."

There are variety of options which the government is exploring, he had said.

Allotment of the 43 coal blocks to government companies would also be done by the end of this week, he had added.

Expecting the details would emerge in "a couple of days" on what actually transpired during the bidding process for the 9 mines, Swarup insisted that the government wasn't looking at cartelisation aspect at the moment.

There have been reports that some bidders could have indulged in cartelisation to keep the prices low for the concerned mines.

"In the schedule II, we were looking at four mines and in schedule III we are looking at five mines," Swarup had said.

He, however, reiterated that the government was only re-examining and not reviewing, "because there was no decision taken. Review happens when you take a decision".

The bids of four coal blocks of the schedule II mines (producing mines) which are being re-examined are Gare Palma IV 2, Gare Palma IV 3, Gare Palma IV-1 and Marki Mangli III.

Jindal Steel and Power (JSPL) was the successful bidder for Gare Palma IV 2 and Gare Palma IV 3 mines, while Balco successfully bid Gare Palma IV/1 mine and BS Ispat bagged Marki Mangli III mine.

source: http://www.business-standard.com