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S G Projects Ltd v/s State Of Bihar

    Decided On, 01 July 2009

    At, High Court of Bihar


    For the Appearing Parties: Gautam Kejriwal, Naresh Dixit, P.K. Shahi, R.B. Mahto, Raj Kishore Prasad, S.D. Sanjay, Tej Bahadur Roy, V.M.K. Sinha, Y.V. Giri, Advocates.

Judgment Text

(1.) IN these two writ petitions, the petitioners challenge the action of the respondents in not finding them technically fit and, thus, not considering their financial bids for being appointed as coal coordinator of respondent-Bihar State Mineral development Corporation Limited and are equally aggrieved by selection of respondent no. 6 in both the writ petitions for the said purpose.

(2.) AS would be seen from the discussion in detail later on in this judgment, the job of the coal coordinator is to lift and distribute coal which is allotted to the Corporation under the new Coal Distribution Policy, 2007 issued by Ministry of Coal, Government of india. This appointment is to be on basis of profit sharing as between the appointed coal coordinator and the Corporation aforesaid.

(3.) IN this country, almost all coal mines are controlled by Government Companies, principally Coal India Limited and its subsidiary companies. Different policies were laid down by Ministry of Coal, Government of India from time to time for distribution of coal which was available to the said Coal companies, the relevant being the new Coal distribution Policy, 2007. Principally under this policy, for private domestic consumers other than defence sector, railways, power utilities, captive power plants and fertilizer sector, the consumers are required to enter into, Fuel Supply Agreement (FSA) and purchase coal at prices notified by Coal India limited or its subsidiaries. Small and tiny consumers in the non-core sector whose consumption was earlier less than 500 metric tonnes were eligible to get coal through state nominated agency. This coal of coverage through State nominated agencies was increased by this policy to 4,200 tonnes per annum. Under the new policy, those units whose requirement was 4,200 tonnes per annum or under, they have to get their coal through agencies nominated by the State government and the rest were to get coal directly from Coal India Limited /subsidiary companies through Fuel Supply Agreement. The relevant parts of the policy are quoted hereunder

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"all the existing linkage holders of erstwhile core and non core sector and not having fsas would be required to enter into FSA with coal companies. At p