Bihar Sponge Iron to Challenge SECL Over Coal Supply Dispute—High Court Grants Revival Option

Bihar Sponge Iron Ltd (BSIL) has announced its intent to pursue legal action against South Eastern Coalfields Ltd (SECL) over a long-standing dispute related to short-lifting of coal under a Fuel Supply Agreement (FSA). The company has already filed a writ petition before the Chhattisgarh High Court, seeking relief from a demand of ₹2.15 crore raised by SECL for alleged non-compliance with coal linkage terms.

 

In a recent development dated March 24, 2025, the High Court directed both parties to appear before the General Manager (Marketing & Sales), SECL Bilaspur, on April 21, 2025, to explore a mutually agreeable resolution within 60 days. However, the court also granted BSIL the right to revive its petition if the matter remains unresolved.

 

The dispute stems from SECL’s claim that BSIL failed to lift the agreed coal quantity, while BSIL maintains that the penalty is unjustified due to operational constraints. The outcome could have financial implications for BSIL’s cost structure and future coal procurement strategy.

 

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Source: BSIL Official Filing