SC denies interim relief to JSW Energy in Chhattisgarh coal block auction
This story was originally published at 19:33 IST on 7 February 2025
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NEW DELHI – The Supreme Court Friday refused interim relief to JSW Energy Ltd., which had sought direction to the government to consider its bid, submitted on Jan. 31, for the auction of Banai & Bhalumunda Coal Block in Chhattisgarh and to allow it to participate in the financial bidding process, which begins on Feb. 17, subject to the outcome of its petition. "We are not inclined to interfere with the judgment (of the high court) which is an interim order," said a bench headed by Chief Justice of India Sanjiv Khanna.
On Monday, the Delhi High Court had sought the government's reply on a petition by JSW Energy against the changes in the eligibility conditions for the auction of Banai & Bhalumunda Coal Block. However, it had refused any interim relief to JSW Energy.
The coal block at Banai & Bhalumunda was put up for auction in 2022, and 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 reinvited bids for the block in December.
The coal ministry issued a corrigendum on Jan. 29 and added additional eligibility criteria for participating in the auction. JSW Energy said 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 that it was, at best, a group company of JSW Steel since the promoters of both companies are the same. The company apprehended that it would be disqualified for being an affiliate of JSW Steel.
JSW Energy said the amendment to the eligibility criteria was clearly not a corrigendum since it sought to introduce a condition of ineligibility after the tender process had been set in motion. It said the corrigendum sought to introduce a disqualification that was never contemplated under the original tender conditions. The change in eligibility clearly amounts to what courts have described as "shifting of the goal post", JSW Energy said.
On Friday, shares of JSW Energy ended 1.9% lower at INR 484.65 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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