JSPL tanks 15% after govt cancels bids for 3 coal blocks

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26 Aug, 2025 12:21

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Shares of Jindal Steel & Power plunged 15 percent in early trade Monday after the government rejected three successful bids in the recently-concluded coal block auctions.

The government has cancelled bids of Jindal Steel and Power and BALCO for four coal blocks amid speculation of cartelisation and said it will take a final decision on these mines after deliberations.

"Department (Coal ministry) will take the final decision on the rejected bids, it will deliberate and then decide," Coal and Power Minister Piyush Goyal said.

When asked whether these blocks will be re-auctioned or allotted to Coal India, Goyal said the department will take a call on it. The government was re-examining the bids for nine coal blocks, including those where Jindal Steel & Power (JSPL) and BALCO emerged top bidders in the recently held auction.

"Bids for Gare Palma IV/1, IV/2, IV/3 and Tara coal blocks not accepted," Coal Secretary Anil Swarup had tweeted on Friday. Jindal Power had emerged as successful bidder for Gare IV/2, Gare Palma IV/3 and Tara coal blocks, while Bharat Aluminium Company (Balco) had successfully bid for Gare Palma IV/1 coal block. However, bids for five other blocks have been accepted, Swarup said.

Sources told CNBC-TV18 that the government may consider to give Gare Palma IV/1, 2 and 3 to Coal India. Coal India is likely to be the custodian of the 2 coal blocks while government may re-auction Tara coal block meant for power sector, say sources.

In an interview to CNBC-TV18, today Ravi Uppal, managing director and chief executive officer, JSPL said the company is shocked with the government’s decision and believes that the bids were very competitive for all the blocks.

“We have not been given any reason for the bid rejection and believes the prices were very realistic. The government has also not given the company a chance to explain how value accretive the bids were,” said Uppal.

While the company is mulling various options to tackle this problem, Uppal said the government shouldn’t forget the quantum of power capacity that is now at stake due to the cancelled bids- 3500 MW.

At 09:47 hours IST, the scrip of Jindal Steel & Power was quoting at Rs 149.85, down Rs 15.10, or 9.15 percent while Sesa Sterlite was quoting at Rs 187.05, down Rs 1.25, or 0.66 percent on the BSE. Sesa Sterlite holds 51 percent stake in BALCO.

(With inputs from PTI)