Jindal Steel & Power shares took a beating on the bourses after the Centre decided to reject its bids for three coal blocks.
Even as the company moved the Delhi High Court against the Centre’s move, on the NSE, the stock closed at ₹154.4, down 6.2 per cent over the previous day’s close. The stock had hit an intra-day low of ₹140.
The court has directed the Centre to maintain status quo on Tara coal mines till April 16, while for Gare Palma IV/2 and IV/3 it asked the Centre to respond by March 25. All three mines are in Chhattisgarh.
The court directed the Coal Ministry to file its response in two days on the Gare Palma mines and listed the matter for further hearing on March 26. It also asked the Ministry to place before it the records regarding the tender annulment, according to a report.
On Tara block, the court sought the government’s response by April 16, the subsequent date of hearing.
On March 20, the Coal Ministry had rejected bids of Jindal Power Ltd and Balco for four coal mines (three Jindal’s and one Balco) after re-examining the bidding pattern as the bids did not conform to the trends.
Reacting to the decision, Jindal Power spokesperson had said, “The reason cited being ‘the highest bidder doesn’t reflect fair value’, which we fail to understand as our bid was much below the ceiling price during the reverse auction process. We are puzzled with the decision and would make our best efforts to engage in a dialogue with the Coal Ministry and Government authorities to present the facts.”
Meanwhile, the Government has allotted to Coal india the three cancelled Schedule-II coal mines, for which JSPL and Balco had emerged the highest bidders in the recently concluded auctions.