KOLKATA | Jan 28, 2015:

Having missed out on the opportunity of becoming the auctioneer for the coal mines e-auction, mjunction services ltd. the equal joint venture of Tata Steel and Steel Authority of India Ltd. has urged the government to appoint the e-auctioneer through a transparent process instead of adopting the nomination route.

In a statement, mjunction CEO and managing director, Viresh Oberoi said: “While the amending of the Mines and Minerals (Development & Regulation) Act will give a fresh impetus to the mining sector in a transparent manner through e-auction, it must also consider appointing the e-auctioneer through a transparent process.” In an oblique reference to the rush through which the government had conducted the task of e-auctioning the coal blocks, whose allocations were cancelled, Mr. Oberoi said “In case of e-auction of mining leases, unlike coal block auctions, the Mines Ministry has ample time to float tenders to select the e-auctioneer instead of going through the nomination route.”

The coal mines e-auction assignment went to public sector company MSTC, which is conducting the process now.

There are reports that although mjunction was a strong contender for the job, it lost out as the government felt that given its ownership profile there might arise a conflict of interest.

mjunction said while the MMDR ordinance does away with discretion in awarding mining leases, the government must also consider appointing the e-auctioneer through a transparent route.

The company also highlighted the fact that the DoT had selected the e-auctioneer through a transparent tendering process for spectrum auctioning.

(Source: http://www.thehindu.com/)