Coal news and updates

RPower, Indiabulls Power unaffected by de-allocation

September 25: Coal blocks allocated to Reliance Power Limited and India Bulls Power Limited remain unaffected after the Supreme Court verdict, the companies said in two separate filings to the BSE on September 24.

Reliance Power, in its media statement said: “The company’s programme of developing and executing the Sasan UMPP (3,960 MW) in the state of Madhya Pradesh and the Tiliaya UMPP (3,960 MW) in the state of Jharkhand is unaffected and remains on course, totalling nearly 8,000 MW.”

Indiabulls Power Limited’s statement said, “Indiabulls Power Ltd is one of the very few power sector companies which are not impacted by this Supreme Court order,”

Indiabulls Power Ltd is developing a 5,400-MW thermal power plant at Amravati and Nashik, and has a dedicated fuel supply agreement with Coal India Ltd for supply of domestic coal.

The company statement added that in a recent Maharashtra Electricity Regulatory Commission (MERC) order; Indiabulls Power Ltd was allowed compensatory cost pass-through for use of imported coal for any shortfall in domestic coal supply by Coal India Ltd.

Tata Power, in a statement to the BSE, said, “Tata Power had two coal blocks jointly allocated to it, along with other co-allocatees. We understand that the Supreme Court by its order today has cancelled all but four blocks. Tata Power would study the order and discuss the same with the board before having a viewpoint.”

“Tata Power would look forward to opportunities of having a new, legally enforceable framework by which coal blocks could be awarded,” the statement added.

Earlier, On September 24, the Supreme Court of India, cancelled 214 of the 218 blocks allocated between 1993 and 2011.