Coal blocks: change in bidding trend led to re-examination

“We felt that there was an outlier in the bidding pattern, which is why we sent the Nominated Authority’s report to an Inter-Ministerial Committee,” Coal Secretary Anil Swarup said, referring to the low-bid blocks.

The Coal Ministry had asked the Nominated Authority to re-examine the bids received for three blocks (four mines) in the producing category and five blocks (six mines) in the ready-to-produce segment in the recent round of auctions.

“Cartelisation or rigging is not even an issue as of now. However, it may be a reason why the bidding pattern has changed,” he told

“Re-examination does not mean that the auction process was non-transparent,” Swarup said. The Coal Ministry expects to take a decision on these blocks in the next couple of days (by Friday).

“If there is a trend that is followed in the bidding pattern for most of the blocks and the same is not followed for a few others, then re-examination is needed. The re-examination is for the bidding pattern not the bidding process.”

It is not necessary that the Nominated Authority’s report on the five ready-to-produce blocks will also be referred to an inter-ministerial committee (IMC), Swarup said, adding that the Ministry had given no guidance to the Authority for re-examining the bids.

The report on the three producing blocks has already been submitted and referred to an IMC.  

If the bidders of blocks under re-examination are not awarded the acreage, then what happens to the initial amount that has been deposited? To this, Swarup said: “If we are directed (by the court), then the initial amount will be given back.”  

On the issue of who will be the custodian of the bid amounts and how the money will be disbursed to the States, Swarup said, “The money will go straight to the State governments. The auction amount and royalty amount goes to the States. Central Government is making zilch.”

The Ministry hopes to conclude and issue vesting orders for 23 blocks in both categories by March 23.

Allotment of 43 blocks to Central and State public sector undertakings is likely to be completed by March 27.

“The next series of auctions will happen only after the Coal Bill is passed. If the Rajya Sabha passes the legislation, then the auction will start immediately, in April,” Swarup said, adding that the number of blocks to be auctioned could be between 15 and 20. There could be some allotment to public sector entities also.

“We haven’t frozen on the exact number but the total will be around 35,” he added.