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Mahagenco moves HC over CIL WCL coal supply
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Sunday, 05 Feb 2012
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TOI reported that Maharashtra State Power Generation Company Limited has moved the judiciary challenging a lower court's order of January 6 directing it to lift 2.15 metric tonnes coal from Western Coalfields Limited mines to transport it to a nearby thermal power station.

According to the petitioner, WCL had expertise in this task and it was an important part of fuel supply agreement between the two entities. Terming the lower court order as "impractical", the generation company contended that it ignored the coal transportation practice including difficulty in transporting coal from pit head to the railway siding.

In their appeal filed under Section 37 of the Arbitration and Conciliation Act, Mahagenco argued that it had already obtained consent of former Chief Justice of India VN Khare to act as arbitrator while WCL had failed to do so. The generation company has prayed for modification of lower court order and also a direction to the coal company to transport the same from their mines to railway siding.

The petitioner had accused WCL of misusing its position to deny legitimate supply of coal to its thermal power station, leading to load shedding in the state.

(Sourced from TOI)

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