HC seeks govt reply on JSW Energy plea on coal block bid eligibility change
This story was originally published at 15:07 IST on 3 February 2025
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NEW DELHI – The Delhi High Court on Monday sought the government's reply on a petition by JSW Energy Ltd. against the changes in the eligibility conditions of the auction of Banai & Bhalumunda Coal Block in Chhattisgarh. The court refused any interim relief to JSW Energy, which had sought directions to the government to not reject their bid in the meantime.
The high court said to seek relief against rejection of a bid, there has to be a bid. In this case, there was no bid by JSW Energy, the court said. Any proceedings in the tender process will be subject to the order passed by it, the court said. It will hear the matter next on Mar. 4.
The coal block at Banai & Bhalumunda was put up for auction in 2022, in which JSW Steel Ltd. had emerged as the successful bidder. However, the Ministry of Coal in November terminated the coal block agreement with JSW Steel and re-invited bids for the coal block in December.
The coal ministry issued a corrigendum on Jan. 29 and added additional eligibility criteria for participating in the coal block auction. JSW Energy said that the corrigendum now purports to exclude affiliates, subsidiaries, group companies or joint ventures of companies whose coal block allocations have been terminated.
JSW Energy said that JSW Steel, the original holder of the coal block, was neither the holding company nor a subsidiary of the petitioner. JSW Energy said, at best, it was a group company of JSW Steel since the promoters are common. The petitioner apprehended it would be disqualified since it is an affiliate of JSW Steel.
JSW Energy said that the amendment to the eligibility was clearly not a corrigendum since it sought to introduce a condition of ineligibility after the tender process had been set in motion. The petitioner said that the corrigendum sought to introduce a disqualification which was never contemplated under the original tender conditions and which had been clearly spelt out therein. The change in eligibility clearly amounts to what courts have described as "shifting of the goal post", said JSW Energy.
At 1454 IST, the shares of JSW Energy were down 5.8% at INR 444.80 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Saji George Titus
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