The auction process for these eight blocks was over quickly and the winning bids were much lower than those in the first round of auctions.
"On the face of it we felt that the bids that were offered were not at the same levels as similar blocks in the same group," Swarup said in an interview to CNBC-TV18.
He however declined to say if the government suspected cartelization, adding that it was too early to say if the bids for these 8 blocks would be cancelled.
"There is a pattern and if somebody falls outside that pattern that needs an examination. Whether it is a cartelisation or not is not something which I can say as of now," he said.
The government's move has come as a surprise to observers as well as participants. In the first round of auctions when companies had bid aggressively, Swarup himself had gone on record to say that the government would not interfere even if it felt the bids were aggressive.
Swarup reiterated that the power companies will not be allowed to pass on the coal block cost to consumers through higher tarrifs. In fact, companies which have rebid for the coal blocks will have to lower the tarrifs quoted in the earlier power purchase agreements (PPAs).
"Right from day one I have being saying that existing PPAs will be re-opened and tariff adjusted downwards in the case of reverse bidding," Swarup said.
"The idea of having reverse bid was basically to impact the tariffs in the negative sense in the sense of reducing the tariffs and that is what government is very clear about," Swarup said.
He said the government would be allotting 43 mines to public sector entities by this weekend.
States are likely to reap Rs 2.07 lakh crore from the coal block auctions, Swarup said.
On Coal India, he said the PSU behemoth was likely to produce around 500 million tonnes this fiscal, up 8 percent over last year.
Below is the transcript of Anil Swarup's interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.
Latha: How many blocks are being reviewed for their auctions?
A: In the schedule II we were looking at four mines and in schedule III we are looking at five mines. Not exactly reviewed because there was no decision taken, review happens when you take a decision and review it. In this case we are examining some details. Prima facie we found that it requires a reexamination so it has been reexamined that is about all.
Latha: Give us the grounds for this doubt?
A: On the face of it we felt that the bids that were offered were at not at the same levels as similar blocks in the same group. However, that was not a decision per se that was first impression and that needed to be examined and that is why it has been examined.
Sonia: Are you noticing any evidence of cartelisation at all?
A: As I said this is a process underway. I would not like to comment on what is going on the file. A decision will be taken in couple of days and you will get to know what has happened.
Latha: For a bidder and an observer of the scene, when the prices were very high you were on this channel saying that you can not understand why people are bidding such unrealistically high levels when there is enough coal and enough coal blocks. And now when the prices are low there is reexamination. So that does make life difficult for the bidder, doesn't it?
A: Life is in any case very difficult and for coal blocks as you would have understood in the past so many years it has been extremely difficult. We are trying to make it easy. If there is a trend that is available, it is not a question of high or low. If there is an outlier or a couple of outliers it is worthwhile examining it before taking a call. We believe that we should not rush into things. We are moving pretty fast but if there are a couple of outliers that needs bit of an examination. I do not think that should be a major cause of a concern. Given the background in which coal auctions have happened in the past, given the background in which coal has been handled in the past few years it would be worthwhile looking into details before coming up with a judgment.
Jindal Steel stock price
On March 17, 2015, at 14:10 hrs Jindal Steel & Power was quoting at Rs 167.00, down Rs 23.25, or 12.22 percent. The 52-week high of the share was Rs 350.00 and the 52-week low was Rs 125.05.
The company's trailing 12-month (TTM) EPS was at Rs 3.88 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 43.04. The latest book value of the company is Rs 142.79 per share. At current value, the price-to-book value of the company is 1.17.
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