The Coal Ministry has allowed Anil Ambani’s Reliance Power to mine an addition 1.20 million tonne from its Moher and Moher Amlohri Extension coal mines for the Sasan ultra mega power project. But, this approval is just for the remaining 15 days of the fiscal.

In June 2015, the Coal Ministry had directed Sasan Power Ltd to limit annual coal production to 16 million tonne.

A senior company official told BusinessLine , “The mining output of the company was about to hit the ceiling of 16 million tonne in the last few days…this would have created a problem for operating the plant. The Ministry’s directive came at the tenth hour.”

The company in a statement said, based on representations by Sasan Power and its procurers to permit the company to produce 17.20 million tonne to meet the requirement of Sasan ultra mega power project, the Ministry of Coal has permitted increase in coal production.

“From April 1, again the ceiling of 16 million tonne per annum will be in place. The Ministry will gauge our requirements again in December,” the official added.

Court case to continue The company had challenged the June 2015 decision of the Coal Ministry restricting mining from Moher and Moher Amlohri Extension in the Delhi High Court.

“We will continue the court case. Any decision on a permanent permission to mine more is up to the Court,” the official said.

The Sasan Ultra Mega Power Project is operating at nearly 100 per cent plant load factor. Plant load factor is a measure of the capacity utilisation of the power plant.

The Ministry’s decision will help the plant generate 2,200 million units of electricity, Reliance Power said in a statement.

“Moher and Moher Amlohri Extension is the largest captive coal mine in the country in terms of the volume handled,” the statement added.

Related Topics