Correction; Delhi High Court Grants Relief to Jindal Power

JSPL’s Jindal Power Ltd succeeds in retaining coal supply from Gare Palma IV/2 and IV/3, as Delhi HC gives its verdict in favor of JPL. The court also directed CIL wrt NTPC.

Considering JPL’s plea on government’s decision to cancel bids for coal supply from two of its coal blocks won in schedule II e-auction arbitrary as veracious, Delhi HC decided in favor of JPL. The Court directed CIL to keep cancellation letter on hold till further orders.

The decision of Delhi HC probably means that Coal India will have to supply coal output from Gare Palma IV/2 and IV/3 blocks to JPL after commencement of mining, which is kept on halt owing to clearances.

The Court further said, Coal India shouldn’t enter any agreement with NTPC to supply coal output from the above mentioned block until it gets all required clearances, especially from the area which was restricted to JPL citing some production issue.

It should be noted that, JSPL won Gare Palma IV/2 and IV/3 coal blocks in Chhattisgarh at INR 108/MT in schedule II e-auction held on Feb’15. It was canceled by centre on Mar’15 on grounds of low bid price.

Coal Blocks Allotment Kept on Hold after Auction:

Win price in INR/MT
Reserves in MnT
-Source: SteelMint Research

Correction:  JSPL’s Jindal Power Ltd succeeds in retaining coal supply from Gare Palma IV/2 and IV/3 instead of JSPL’s Jindal Power Ltd succeeds in retaining Gare Palma IV/2 and IV/3 coal Blocks.