Why not sell coal from two Chhattisgarh mines to JPL:HC to CIL

Image
Press Trust of India New Delhi
Last Updated : Jul 01 2015 | 7:02 PM IST
Delhi High Court today suggested to Coal India Ltd (CIL) to sell to Jindal Power Ltd (JPL) the coal it has started to mine from two Chhattisgarh mines if it did not have the space to store the mineral.
A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva gave the suggestion after CIL moved an application seeking permission to sell the coal it has started to mine from Gare Palma IV/2 and IV/3 mines after receiving environmental clearance.
It moved the application as the high court on May 27 had kept in abeyance a letter issued by CIL cancelling the e-auction in which JPL had won 49,000 metric tonnes of coal to be mined from the two mines.
CIL put before the bench three options - selling the coal by way of a fresh e-auction, selling it to those companies with whom the public sector unit has a fuel supply agreement or sale to National Thermal Power Corporation Ltd (NTPC) - and asked the court which method should it go for.
The counsel for CIL told the court that the problem was that after it had received environmental clearance, it had commenced mining and now the mineral was accumulating at the site with no space to store it.
It also sought clarity on whether the court's May 27 order would prohibit it from selling the coal it was mining.
The court, however, only suggested that CIL can sell the coal it was mining to JPL or hold a fresh e-auction in which the power company can participate and did not pass any order.
It listed the matter for further hearing on July 7.
CIL's application was filed in the main petition of JPL which has challenged a May 16 letter by which the PSU claimed the e-auction was cancelled.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 01 2015 | 7:02 PM IST

Next Story