Date | March 22, 2016:
Anil Ambani-promoted Reliance Power on Monday told the Delhi High Court that it wants to file objections to the coal ministry’s decision granting permission to its Sasan Ultra Mega Power Project (UMPP) to increase coal production up to 17.20 million tonne per annum (mtpa) from its Moher and Moher Amlohri extension coal mines during 2015-16. The company had wanted to increase production up to 20 million tonne.
Senior counsel Rajiv Nayyar told the bench headed by chief justice G Rohini that the government’s March 15 decision to increase mining cap up to 17.20 mtpa was taken without hearing the company. Besides, it wanted at least 20 million tonne of coal to fully meet the requirements of its 3,960 mega watt Sasan Ultra Mega Power Project (UMPP).
Additional Solicitor General (ASG) Sanjay Jain told the court that the government had allowed them to mine upto 17.2 million tonne of coal and this “is more than what can be consumed by it… there is no such tearing hurry to allow more…”
However, the court allowed Reliance to file its objections and posted the matter for further hearing on May 5.
The coal ministry had in June last year directed Sasan Power to limit annual coal production at 16 million tonne. The company can now mine an additional 1.2 million tonne in the remaining days of the 2015-16 fiscal. The permission was given after representations from Sasan Power as well as its consumers.
Reliance Power had last week moved the HC seeking permission to continue mining coal in excess of the restriction, placed by the Centre, on coal production from its Moher and Moher-Amlohri blocks in Madhya Pradesh. It said that if it was not allowed to continue mining after reaching the 16 million tonne per annum cap fixed by the government, then it will have to shut down its UMPP. Reliance in its application also said that shutting of its UMPP would affect 42 crore people in seven states who are supplied electricity procured from it by 14 distributors.
Reliance Power has also sought that the 2009 mining plan which allowed the company to mine 20 million tonne coal per annum from the two blocks, be implemented. Apart from the plant, even the mine would have to be shut down if the permission is not granted, it has said and added that restarting of operations in the plant and mines would involve “significant mobilisation and demobilisation of resources” which would be economically detrimental.
Buying alternative power at an average price of Rs 5 per kWh would place an additional burden of over R1000 crore on state exchequer on a monthly basis, it said in its plea. Reliance has claimed that it supplies about 3,722 mega watt power at a tariff of Rs 1.196 per kWh.
A Supreme Court judgment in August 2014, cancelled all coal blocks allocations made over the past two decades except the ones awarded to UMPPs on bidding basis. The court also asked the UMPPs not to use surplus coal from the attached mines for commercial purposes.
(Source: http://www.financialexpress.com/)