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Business News/ Industry / Energy/  Piyush Goyal defends govt decision to cancel bids of JSPL, Balco
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Piyush Goyal defends govt decision to cancel bids of JSPL, Balco

Bids rejected for sake of transparency and ensuring people get optimum compensation for resources, says Goyal

Piyush Goyal says the next round of auctioning of coal blocks will happen towards the end of April or in the first week of May. Photo: Virendra Singh Gosain/HTPremium
Piyush Goyal says the next round of auctioning of coal blocks will happen towards the end of April or in the first week of May. Photo: Virendra Singh Gosain/HT

Mumbai: The government has changed and there is a new Comptroller and Auditor General (CAG) in place, but the impact of the previous CAG’s explosive reports on coal and spectrum allocations has not been forgotten.

Defending the government’s decision to reject three winning bids for coal blocks, Union power and coal minister Piyush Goyal said on Tuesday, “If we don’t intervene, tomorrow, we won’t have any answers if any questions are being raised by the auditor and courts. So, for the sake of transparency and ensuring people get optimum compensation for their resources, we decided to reject the bids."

On Saturday, the government had rejected the winning bids by Jindal Steel and Power Ltd and Bharat Aluminum Co. Ltd for four coal mines. The Delhi high court on Monday asked the government to maintain status quo on one block and sought reply on the others. The court will hear the case next on 26 March.

At a press conference in Mumbai, Goyal denied this was a setback. “I don’t think the government has been put on the backfoot because the Delhi high court has stayed our decision. I am confident once we place all the facts and rationale behind our decision before the court, it will see merit in our decision," he said.

Answering a question, Goyal said, “The next round of auctioning of coal blocks will happen towards the end of April or in first week of May. Dates will be notified very soon."

On a question regarding gas supply for the stranded Ratnagiri Gas and Power Pvt. Ltd (RGPPL) project in coastal Maharashtra, Goyal said, “We are taking a review of all gas-based power projects—not just the Dabhol power project...You will soon hear positive news from our side on this issue."

The 1,967 MW power project is closed since June 2013 due to lack of gas.

Earlier, Goyal attacked Sanjay Raut, Shiv Sena member of Rajya Sabha and executive editor of party’s mouthpiece Saamana over street-lighting in Mumbai. Street-lighing in Mumbai’s Marine Drive became a political controversy after the yellow sodium vapour lamps there were replaced by LED lights. Heritage activists, Shiv Sena and residents have opposed the change on various counts. Goyal did not name Raut.

Sena has accused Goyal of corruption in implementing the project for the benefit of electrical equipment manufacturers.

Countering the charges, Goyal said, “There is one journalist, who thinks he is a custodian of interests of Mumbaikars and writing long articles and making baseless and malicious allegations. I don’t know whether he is doing (this) out of personal interest or some other reasons."

The central government- owned Energy Efficiency Services Ltd has signed a contract with Municipal Corporation of Greater Mumbai to replace 136,000 street-lights in Mumbai with LED lights and they are expected to bring savings of 80 crore to Mumbai.

On a pilot basis, lights on Mumbai’s iconic Marine Drive or Queen’s necklace were replaced. However, some local residents, heritage activists and the Sena have objected to the decision on the grounds that it robs Mumbai of its beauty and also creates more dark spots that will compromise the safety of women.

Strongly rebutting the accusations, Goyal said, “The so called heritage activists are not aware about Mumbai’s history; 30 years ago, Marine Drive was lit with white lights and that’s why it used to be called queen’s diamond necklace but 30 years ago it was decided to replace them with yellow light emitting sodium vapour lamps as they were considered to be energy efficient lamps in those days."

And claiming that, there is no compromise on quality of illumination or increase in dark spots, Goyal produced a study conducted by consulting firm PwC India and said, “Those who are making such claims can go through study conducted by independent agency like PwC."

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Published: 25 Mar 2015, 12:06 AM IST
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