**Vedanta Challenges Coal Ministry’s Appropriation Order Amid Regulatory Delays**
Vedanta has filed a legal challenge against a July 21 order from the coal ministry’s Nominated Authority, which directed the appropriation of ₹263.17 crore from the company’s guarantee. In its writ petition, which has been reviewed, Vedanta is seeking a stay on the order and an extension of project milestones, citing regulatory delays and unexpected ecological challenges.
The company secured the coal mine in a 2020 auction, which is vital for its aluminium production operations. The petition states, “The Petitioner seeks appropriate orders to stop the implementation of the appropriation order dated 21.07.2025 issued by the Nominated Authority, Ministry of Coal, and to refund any amount that may have been taken under it.” A spokesperson for Vedanta commented, “Vedanta has sought legal remedies. The matter is sub judice, and we will not be able to comment further.”
Despite attempts to reach the coal ministry for comments, no response was received by press time. Vedanta contends that the appropriation order is “illegal, arbitrary, unjust, and unsustainable,” arguing that the delays were due to administrative and regulatory issues rather than negligence on their part. The company is requesting the court to annul the order, suspend its enforcement, refund any deducted amounts, and grant additional time under the Coal Mine Development and Production Agreement (CMDPA).
The petition outlines several factors contributing to the delay in meeting Milestone-3, including the second wave of COVID-19, boundary mapping complications, and holdups in obtaining forest and environmental clearances. “The Petitioner has invested over ₹350 crore and made significant progress toward mine development. However, due to administrative inconsistencies and unforeseen ecological developments—including the presence of elephant corridors and areas now classified as deemed forest—the project timeline became impossible to meet,” the petition elaborated.
In its response to the high court, the Ministry of Coal stated that action was taken because Vedanta did not secure the necessary forest and environmental clearances in a timely manner. This delay was deemed a violation of the project timeline, especially since Vedanta had committed to completing the project by June 3, 2025.
The Radhikapur (West) coal block, located in Angul district approximately 190 km from Vedanta’s Jharsuguda aluminium plant, is a combined opencast and underground mine with a peak production capacity of 6 million tonnes per annum (MTPA). Spanning 1,048 hectares, it contains 312 million tonnes of coal reserves, of which 151 million tonnes are extractable.
The project has a complex history, having originally been allotted in 2009 to a joint venture that included Rungta Mines Ltd, OCL India Ltd, and Ocean Ispat Pvt.
**FAQ**
**What is Vedanta’s current legal challenge regarding the coal mine?**
Vedanta is challenging a July 21 order from the coal ministry that directed the appropriation of ₹263.17 crore from its guarantee, citing regulatory delays and ecological issues.
