NEW DELHI: After facing criticism over the allocation of coal mines to the Adani Group, the coal ministry on Wednesday refuted such insinuations and clarified that mines are being auctioned through a transparent mechanism.
The government rejected claims that Cavill Mining, which was the only other bidder for a mine that Adani Group won in March 2023, is related to Adani Group. “No correlation has been established between Cavill Mining and Adani Group… In this case, it can’t be established that Cavill is an affiliate of Adani Group. Furthermore, in case a misrepresentation has been found at any stage of the auction process, the Ministry of Coal has a right to take appropriate actions,” said the ministry in a statement.
As per a media report, Adani Group emerged as one of the biggest winners in the commercial coal auctions held in March 2023. The company picked up four coal blocks at among the lowest prices in the auction. The report said North West of Madheri coal block won by Adani Group had only one other bidder, Cavill Mining Private Limited. The report alleged there is some correlation between Cavill Mining and Adani Group.
As per the rules, in case of less than two technically qualified bidders, the first attempt of the auction for that mine will be annulled and the second attempt of the auction may be initiated with the approval of the competent authority. However, in case of only one bidder again in the second attempt, the matter will be referred to the Empowered Committee of Secretaries (ECoS) comprising Secretary (Department of External Affairs), Secretary (Department of Legal Affairs), Secretary (Ministry of Petroleum and Natural gas) and Secretary (Coal) for appropriate decision with respect to allocation of mine.
The government started auctioning commercial mining in 2020. A total of 91 coal mines have been auctioned so far. The mines have been allocated to Vedanta Limited, Birla Corporation Limited, and JSW Steel Limited among others.
‘Adanis picked up 4 blocks at among lowest prices’
According to a report, Adani Group picked up four coal blocks at among the lowest prices in the auction. The report said North West of Madheri coal block won by Adani Group had only one other bidder, Cavill Mining Private Limited. The report alleged there is some correlation between Cavill Mining and Adani Group