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Home News Power Sector News Tata Power plans to appeal supreme court against Sasan UMPP coal diversion

Tata Power plans to appeal supreme court against Sasan UMPP coal diversion

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Supreme CourtTata Power plans to file an appeal in the Supreme Court , after the Delhi High Court dismissed the Tatas’ petition on diversion of surplus coal from blocks allotted to the Sasan ultra mega power project. "We would be filing an appeal before the Supreme Court as we strongly believe that the issue has larger national ramifications," said a Tata Power statement.

The Delhi High Court  dismissed a petition filed by Tata Power challenging an earlier Empowered Group of Minister’s decision to allow surplus coal from coal blocks allotted to the Sasan ultra mega power project to be used by other power projects of Reliance Power.

"Tata Power strongly believes that it has raised an important issue concerning the government of India’s decision to permit the diversion of coal from captive mines allotted exclusively to Sasan UMPP to other projects of Reliance Power, after the conclusion of the bidding process," said Tata Power.

The decision will disturb "the fairness, transparency and the level playing field, and is not in accordance with the bidding documents. The issue assumes further significance in view of the PPP (public-private-partnership) model being adopted for the country’s infrastructural development. We believe that we have not suppressed any facts or provided any incorrect information," said Tata Power.

The Sasan UMPP, the largest pit head domestic coal based power project in the country, was in 2007 awarded to Reliance Power, after an international tariff-based competitive bidding process. The project has been allotted coal mines in Singrauli area to meet its fuel requirement.

Reliance Power had requested the government to allow it to use surplus coal from the Sasan mines for its other power projects.

In Aug 2008, the Empowered Group of Ministers approved Reliance Power’s request to allow optimal utilisation of coal reserves and to provide impetus to generation capacity addition in the country. This decision was contested by Tata Power which filed a petition in Delhi High court.

Source-  Economic Times

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