Pay Rs 33lakh to CIL for holding cost for coal stock: HC to

The Delhi High Court today asked a steel company to deposit Rs 33 lakh for three months as holding charges with Coal India Ltd (CIL) towards safety and security of 78,000 metric tonne of coal rejects left behind by it at a mine in Jharkhand.
Justice Rajiv Shakdher said Electrosteel Castings Ltd (ESCL) can deposit the holding cost, which CIL has set Rs 11 lakh per month, for three months and meanwhile, the state-run enterprise will make all endeavours to sell the rejects left behind by the company at the Parbatpur mine.
Coal rejects are obtained after the mineral is washed in a washery unit for removing the impurities.

If CIL, which is the custodian of the mine, is unable to do so in the given period, then the company can remove the stock from the land on or before July 15, the court said.
It further asked the company to file an undertaking that it will abide by the terms.
With regard to the selling of the coal stocks by the company in case CIL fails to do so, then the government will facilitate the sale in accordance with law, the court said.

CIL is custodian of the mine as it was taken off the auction block as only one company showed interest in bidding for the block.

It was hearing a plea by ESCL seeking six months time to remove the coal rejects left by the company at the mine which was earlier alloted to it.
ESCL alleged the stock of rejects had accumulated as the government "sat on" its request for permission to sell them for over six months.
The Coal Ministry opposed the company's plea for time and said ESCL should have removed the rejects by April 8 according to the March 26 order.