Rel Power may be allowed to use surplus Sasan coal

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New Delhi, Sep 5 : Anil Dhirubhai Ambani Group company Reliance Power has received a major boost as the empowered group of ministers (eGoM) has recommended the coal ministry to allow the former (Reliance Power) to use surplus coal from the mines allotted to Sasan ultra mega power project (UMPP) to its other power projects. However, the eGoM has given its approval subject to various undertakings by the Reliance Power. One of them is the 3,960 mw Sasan UMPP which will always have the first right and overriding priority over all coal produced from the allotted blocks and the allottee will always ensure that the generation from the UMPP for the entire contracted period will not be allowed to be affected by utilisation of incremental coal by any other project of the Reliance Power. Any loss in generation of the awarded UMPP at Sasan will only be on account of genuine reasons such as maintenance and repairs.

Besides, incremental coal quantity would be determined based on the mine plan approved by the coal ministry. End use of coal from these blocks would be restricted to power generation and on top of it, the power generated by utilising incremental coal from these captive coal blocks would be sold through tariff-based competitive bidding.

It must be mentioned here that Reliance Power has planned a total capacity addition of 28,500 mw during 11th and 12 plans.

Sources told FE on the sidelines of the Coal India conference organised by the coal ministry and the Indian Chamber of Commerce on Friday, “The matter was examined and discussed at length by eGoM headed by power minister and it was agreed that for expeditious implementation of coal-based thermal power projects, which would also increase the generation capacity of the country, and for optimal utilisation of coal reserves in the blocks allotted to UMPPs, incremental coal may be permitted to be used by other projects of the same developer of the UMPP subject to necessary safeguards. It must be ensured that the allotted UMPPs and procurers from UMPPs do not suffer for lack of coal and also that incremental coal is not misused by the developer. This decision will apply to Reliance Power also.”

Sources said that the decision was crucial when the centre has launched the capacity addition of 78,700 mw of which more than 60% is expected to be coal based.