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Home News Power Sector News Tata Power moves SC on Sasan surplus coal to Reliance

Tata Power moves SC on Sasan surplus coal to Reliance

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Supreme CourtThe row over the Sasan ultra mega power project refuses to subside, with Tata Power approaching the Supreme Court seeking to overturn a government decision allowing Reliance Power to divert surplus coal from the plant’s captive mines to another project. Last month, the Delhi High Court had overthrown a similar petition ruling that Tata Power had no locus standi to file the petition, which, in any case, was delayed. The apex court will now hear the latest Tata Power challenge .

The 4,000 mw mega project located at Sasan in Madhya Pradesh, one of the first of its kind, has been dogged by controversies ever since public sector Power Finance Corporation invited bids in 2006. Initially, the project was awarded to a consortium of Lanco Infratech-Globeleq, but was scrapped eventually after allegations of financial misrepresentation.

Reliance Power outbid NTPC and Jaiprakash Associates to win the project in the second bid in 2007. Tata Power, which was a party in the first bid, had stayed out the second time.

Sasan was allotted three coal mines (of total 750 as reserves at Moher, Chattrasal and Moher-Amlori Extension) on the condition that the coal produced from the block would be exclusively used for the project.

A screening committee of the coal ministry had first noted that the Moher and Amlori blocks were big enough to support the entire requirements of Sasan. But within a few days, it approved the need for Chatrasal block for Sasan. Soon after, the Madhya Pradesh government requested the prime minister to allow Reliance Power to utilise excess coal from the mines, and launch another project at Chitrangi.

Source - Times of India

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