The Coal Ministry has cancelled one of the coal mines allocated for Anil Ambani Group’s ultra mega power project at Sasan, Madhya Pradesh.
The Ministry has cancelled the Chhatrasal coal mine as it is surplus for requirements. However, those associated with the project said that there is no surplus being generated currently.
Reliance Power’s Sasan UMPP is being fed by coal from Moher and Moher-Amlohri and Chatrasal mines. On April 22, Reliance Power had said coal production had begun from the 20 mt Moher and Moher-Amlohri block.
The Ministry's decision is following the Supreme Court decision on September 24, 2014 of not allowing surplus coal from the mines associated with such projects for commercial uses.
The surplus from Chatrasal mine is to be used for the company’s 4,000-MW Chitrangi power project.
The Ministry has also decided to restrict the use of coal from Moher and Moher-Amlohri block to only Sasan project.
Reliance Power had been permitted to use surplus coal from the three mines given to Sasan UMPP in 2008. After the Supreme Court decision last year, it was allowed to use the surplus coal only for generating electricity at tariffs derived through competitive bidding.
The Sasan UMPP achieved power station commercial operation recently after all six units totalling 3,960 MW were working continuously for 24 hours. The project was completed 12 months ahead of the power purchase agreement schedule. Reliance has invested Rs 27,000 crore in the project.
However, recently, the company had sought to exit the Rs 36,000 crore Tilaiya UMPP in Jharkhand.