The Aryavarth Express
Agency(New Delhi): The Ministry of Coal has issued a response to recent allegations reported in a section of the media, which claimed that the Union Government unfairly excluded West Bengal from participating in the coal auctions held in 2015, purportedly benefiting a specific corporate entity. These allegations suggested that the Coal Ministry disqualified the West Bengal Power Development Corporation Limited (WBPDCL) based on its status as a prior allottee who had not paid an additional levy within the prescribed timeframe.
The Ministry has categorically stated that the allegations are incorrect and baseless, attributing them to a misunderstanding of the coal block allocation process and the provisions of the Coal Mines (Special Provision) Act, 2015. According to the Ministry, coal mines are allocated through an auction process open to both government and private companies, while allotments are exclusively for government entities. As per the Act, prior allottees or their promoters who have not paid the required additional levy are ineligible to bid, which led to WBPDCL’s disqualification due to its association with Bengal Emta Coal Mines Ltd, a prior allottee.
Furthermore, the Ministry clarified that provisions exist within the Act for the allotment of coal mines to government companies or corporations. Since WBPDCL was not a prior allottee and was thus eligible to receive mines through allotment, it was accordingly allocated mines, refuting claims of wrongful exclusion.
The Ministry also addressed accusations of collusion and reduced competition in the bidding for the Sarisatolli mine, labeling these as unfounded. It explained that the auction methodology allowed joint venture companies with a common Specific End Use (SEU) to independently bid in the e-auction to encourage aggressive bidding from the outset and prevent cartels, thereby ensuring robust competition. This approach was validated by the Delhi High Court. In the case of the Sarisatolli coal mine, the participation of five technically qualified bidders and the receipt of 167 quote bids underscored the competitive nature of the auction.
The Ministry’s statement aims to dispel concerns about the fairness and legality of the 2015 coal auctions, highlighting the structured and competitive process underpinning the allocation of coal mines.
