The coal project had run into rough weather as a petition was filed against the company arguing that the coal mine site was not safe as the ordnance factory was situated nearby. The decision followed the recommendations of an expert committee headed by the scientific advisor to the ministry of defence, APJ Abdul Kalam, who examined the issue. The committee said there will not be any risk if mining is done three kilometers away from the boundary of the factory.

Cicco, a subsidiary of the Ispat group, has been set up to provide coal for the entire captive requirement of the 1082 mw Bhadravati power project in Maharashtra being implemented by Cipco, a joint venture of Ispat, GE Alstom and Electricite deFrance.

The company will mine four million tonnes of coal annually for the power project. It is also not allowed to sell coal to other parties as it is set up for captive requirement.

However, the Maharashtra State Electricity Board (MSEB) has agreed to purchase the coal in case the power company does not utilise the required amount.

On the other hand, if the coal company is not able to produce the requisite amount of coal, it will have to import and supply it to the power company. The coal company earlier was to mine coal from Lohara West and Bander Block.