JSPL confident of taking part in coal block auction, says CEO

NEW DELHI: JSPL, whose coal blocks were among those cancelled by the Supreme Court, today exuded confidence that it will be allowed to take part in the proposed auction of mines.
"Of course, we will be allowed to participate. Government has made it clear that those firms which are convicted would not be allowed to participate in auction process. We haven't done any such thing, there is no reason," said JSPL's MD and CEO Ravi Uppal told a television channel.

Against the backdrop of Supreme Court last month quashing allocation of 214 coal blocks to various companies since 1993, the Union Cabinet yesterday recommended promulgation of an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs.

JSPL is one of the worst hit firms with cancellation of coal blocks as its all 12 million tonnes per annum coal production comes from blocks allocated after 1993.

"We are a major player within the steel and power space and it's very important from the government point of view also that a company like JSPL which has contributed so much to the growth of power and steel industry, allowed participation and continue the operation. Please remember, we are employing nearly 35,000-40,000 people in the mines as well as the backup units," Uppal said.

The Cabinet also decided that there would be no right of first refusal and all bidders would have to compete in the e-auction through reverse bidding.

"I wish they agreed to the right of first refusal for the mines which are already operational. There is definitely more continuity for people whose mines are operating but if they have taken a decision, then we respect the government's decision and will take it as it comes," he added.

Finance Minister Arun Jaitley had last evening said the auction process would be "transparent" and completed in "three to four months" with proceeds going entirely to the state governments where the mines are located.
Uppal said he hoped that the government would be very realistic in the matter of fixing the floor price and the environment clearances. All these things must come along with the decision to allocate the mines after the auction, he added.