Reacting to the CAG report, a Reliance Power spokesperson said its observations were “misplaced and bereft of facts.”
The spokesperson said as per the bidding conditions of the project and power purchase agreement, the responsibility for acquiring land for the project and the mines was that of the State Government where the project was being executed.
“Any increase in cost incurred on acquiring non-forest land for compensatory afforestation would have increased the cost of the project, which, in line with the bidding conditions, has to be borne by the power procurers from various States,” the spokesperson said.
The company official claimed that the exemption from acquiring non-forest land for compensatory afforestation had not benefited or extended any ‘undue favour’ to Sasan Power Ltd.
“Instead the benefit has accrued to the over 35 crore consumers across seven States who are the ultimate beneficiary of low-cost power from the Sasan UMPP,” the company spokesperson said.