BENGALURU | Dec 09, 2015: The High Court on Tuesday directed the Karnataka Power Corporation Limited (KPCL) to re fresh bids to select a mine operator for its coal blocks in Chandrapur district of Maharashtra.
The directive was issued based on a writ petition filed by EMTA Coal Limited, Kolkata, and Karnataka EMTA Coal Mines, against KPCL and the state government.
The petition was filed after termination of a contract between the parties over supplying coal from the block to the thermal power plant at Ballari.
The termination followed a Supreme Court decision which held that the allocation of coal blocks between 1993 and 2010 was illegal.
The court, however, allowed the petitioners to bid when KPCL invites fresh tenders. The court also directed KPCL to extend the last date for submission of bids, which was August 5, 2015.
What is the Issue?
The petitioners had formed a joint venture company with KPCL with an agreement to supply coal at a price lesser than the prevalent rates of Coal India Ltd in 2004. The mines became operational in 2008 and its capacity was increased from 2.5 million tonnes to 5 million tonnes per annum in 2011.
The agreement between the two parties was struck down following the Supreme Court’s decision on allocation of coal blocks.
The petitioners had contended that the termination of contract would violate Section 11 of the Coal Mines (Special Provisions) Act, 2015.
In March 26 this year, the KPCL Board had decided to avail the services of the existing mine operator for a period of nine months or till a new operator is finalised.
(Source: http://www.newindianexpress.com/)