Coal India still maintains bans on IDL Explosives Ltd despite Court order demands re-evaluation
GOCL Ltd wholly-owned subsidiary IDL Explosives Ltd has announced that High Court of Calcutta has asked state-owned Coal India Ltd to revises its punitive orders regarding imposing of bans and other stringent actions. Still, the PSU has not revoked its order resulting in the further action anticipated by the applicant.
Kolkata: GOCL Ltd wholly-owned subsidiary IDL Explosives Ltd has announced that High Court of Calcutta has asked state-owned Coal India Ltd to revises its punitive orders regarding imposing of bans and other stringent actions. Still, the PSU has not revoked its order resulting in the further action anticipated by the applicant.
Earlier, Coal India banned IDL from participating in any contracts or order awards made by CIL or its subsidiaries for two years in a letter dated July 2, 2024. IDL's failure to satisfy a tender requirement pertaining to the required local content in their supplies is the reason for this action. Current contracts for the supply of bulk explosives until October 2025 and cartridge explosives and accessories until May 2025 are unaffected by this ban. The GOCL Corporation Board of Directors met to discuss the situation in light of these developments.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
In order to guarantee a steady supply to CIL, the Board recognised the difficulties caused by the insufficient domestic supply of ammonium nitrate, a vital raw material for the production of explosives. Notwithstanding the prohibition, GOCL's subsidiary stated that it was confident in its ability to make a compelling case to CIL authorities in hopes of a favourable outcome.
Further, IDL Explosives Limited (IDL) made a detailed representation/appeal vide their letter dated 18th July 2024 to Coal India Limited (CIL) to review their decision. However, having received no response, IDL has approached the Hon’ble High Court of Calcutta for the necessary relief. The Hon’ble High Court has vide their Order dated 20.1.2025 directed CIL to dispose of IDL’s representation/appeal in 4 weeks’ time.
The Hon'ble High Court in Calcutta invalidated the CIL letter dated February 27, 2025, on April 11. The court also ordered the CIL Chairman to reevaluate IDLEL's application on the basis of proportionality of the ban order, to issue a reasoned order explaining why the ban should be in place for the longest possible duration, to reveal the seriousness of the offence, and to determine whether CIL or any of its subsidiaries suffered any losses as a result of the local content certificate that IDLEL submitted.
The parent company has been informed by IDL Explosives Limited (IDLEL) that subsequent to the aforesaid, CIL has vide their letter dated 2nd May 2025, maintained the same punitive action.
IDLEL is of the opinion that CIL’s reasoned order has not adhered to the criteria/guidelines laid down by the Hon’ble High Court and therefore is approaching/appealing to the Hon’ble High Court immediately.
Read Also : Shri Sanjay Khanna appointed as Nominee Director (BPCL) of Petronet LNG