According to Bloomberg, the demand on Coal India’s $10.9 billion cash position comes amid the coal company’s plans to pay a record dividend to help Prime Minister Manmohan Singh pare the budget deficit.

“Coal India hasn’t ever paid for the land it took from the state government for the mines,” Jharkhand bureaucrat JB Tubid reportedly said.

“Land is the state’s property and we must be compensated.”

Coal India technical director Nagendra Kumar reportedly said talks were underway to resolve the matter.