The Supreme Court has asked India’s largest coal producing company — South Eastern Coalfields Ltd — to pay within a month Rs 300 crore as compensation for using forest land in Chhattisgarh.

This is in addition to Rs 50 crore already paid by the PSU, which is a subsidiary of Coal India Ltd, to continue its operations in the state.

SECL will have to pay Rs 100 crore within a week and the rest within a month, the forest Bench comprising CJI Y K Sabharwal and Justices Arijit Pasayat and S H Kapadia directed on Friday.

The court, in its earlier judgment, had said that all companies were liable to pay Penal Compensatory Afforestation cost and amount of Net Present Value to continue operations in forest land already allotted to them by the states.

Appearing for the PSU, solicitor general G E Vahanvati argued that the company had one of the best records for protection of environment and had won awards at the national and state level.

He said the Rs 50 crore already deposited by the company was compensation enough for it to be allowed coal mining operations.

Appearing for the ministry of environment and forests, counsel A D N Rao contended that the NPV and PCA cost was calculated to be in the range of Rs 600-odd crore.

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