The Maharashtra Government had allotted to the Central India Coal Company, a subsidiary of the Ispat Industries, three rich coal mine blacks in the proximity of the ordnance factory in the district in 1993. Former Lok Sabha member Banwarilal Purohit challenged the action of the Government through a public interest litigation in the high court. He had alleged violation of security norms, statutory provisions and underhand dealings in the allocation of the mining blocks.

The court dismissed the petition of Purohit as withdrawn on Thursday but praised him for raising the vital issue of protecting sensitive defence establishments.

During the hearing of the petition, counsel for Ispat Industries informed the court that the company was abandoning its plan to have the captive coal mine in the light of the report of a high-level expert committee headed by scientific advisor to defence minister APJ Kalam prohibiting mining operation within three kilometres of the periphery of the ordnance factory. Counsel said that the mining project had now become unviable on techno-economic grounds.