Coal news and updates

Centre yet to decide on Reliance’s Sasan coal blocks

The Coal Ministry is yet to take a decision on Reliance Power’s request to allow it to keep mining 20 million tonne per annum from Sasan ultra mega power project’s (UMPP) two coal mines — Moher and Moher Amlohri Extn.

In June, the Ministry of Coal had asked the company to restrict mining to 16 million tonne per annum and submit a new mining plan for the same.

This was after the Ministry had de-allocated the Chhatrasal block which was given to the Sasan UMPP, as coal from the block was being diverted to its Chitrangi power plant according to a directive from the previous UPA government.

In its response, Reliance Power has written to the Ministry stating that it had earlier assumed it would require 16 million tonne per annum but subsequently after commencement of mining it felt it needed 19 million tonne per annum.

According to those in know, the current requirement is 16 million tonne per annum, but one cannot be sure of the quality of coal going forward, therefore the company has sought permission to evacuate 20 million tonne and create reserves.

The tussle over the coal blocks began after Reliance Power announced its decision to seek termination of the Tilaiya UMPP in Jharkhand. The directive from the previous UPA Government allowed Reliance Power to sell the excess coal to its Chitrangi power plant in Madhya Pradesh.

source: http://www.thehindubusinessline.com