Leaked draft reports of the CAG had mentioned that the government's decision to allow Reliance Power to use surplus coal from mines attached to ultra mega power projects (UMPPs) at Sasan and Tilaiya had given undue gains for the company.
In a letter to CAG Vinod Rai last week, it said that the Empowered Group of Ministers (EGoM) had endorsed the government's decision to allow Reliance Power to use surplus coal from the Sasan UMPP for the proposed Chitrangi project.
The EGoM had also decided that the use of coal in another UMPP at Tilaiya would be governed by a comprehensive policy that would be approved by the Cabinet committee on economic affairs.
"There is no clarity on the outline of this policy. Any policy would be applicable for the sector as a whole, and hence, it will be premature to quantify any benefit today, of a policy that is yet to be formulated," the company told the CAG.
"We would kindly request you to kindly consider dropping the audit para on 'undue benefits' arising out of surplus coal from Sasan UMPP and Tilaiya UMPP," it said.
The EGoM, in its meeting in December, had decided to seek the advice of the Attorney General on the issue of using surplus coal at Sasan and Tilaiya. Reliance Power plans to use Sasan's surplus coal at the Chitrangi project, which is still awaiting certain approvals.
Source- Economic Times