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Home News Power Sector News Coal ministry issues show cause notice to Reliance Power for delay in development of Tilaiya UMPP mines

Coal ministry issues show cause notice to Reliance Power for delay in development of Tilaiya UMPP mines

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RelianceThe coal ministry has issued a show cause notice to Anil Ambani-led Reliance Power seeking reasons for the delay in development of coal blocks attached to the abandoned Tilaiya ultra-mega power project (UMPP). The ministry has also asked Reliance Power why its bank guarantee should not be deducted for violation of the terms of allotment of the Kerandari B&C coal blocks.

Reliance Power has been given 15 days to reply.

"Tilaiya UMPP project has received a huge setback, rendering the country deprived of power to be produced from the said project. Hence, Reliance Power/Jharkhand Integrated Power Ltd cannot be absolved of its responsibility of paying damages for non-achievement of milestones set for development of Kerandari B&C coal blocks," the notice, issued on Tuesday, said.

In April last year, Reliance Power had abandoned the project saying the host state, Jharkhand, had not co-operated with the company in acquisition of land, captive blocks and related infrastructure over the previous five years.

Source- ET


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