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Reliance Power writes to Coal Ministry seeking withdrawal of mining restrictions

Anil Ambani-promoted Reliance Power has written to the coal ministry against the latter's decision to restrict coal mining from two blocks attached to the company's Sasan ultra mega power project (UMPP) in Madhya Pradesh.

The company said it requires permission to mine up to 20 million tonne coal annually from the Moher and Moher Amlohri blocks as a backup to geographical surprises affecting mineable quality and quantity of coal, a senior government official said.

Reliance Power asked the ministry to withdraw a letter dated June 3 asking the company to submit a revised mining plan downsizing the UMPP's requirement to 16 mtpa from the two blocks for the UMPP. It was earlier permitted to mine 20 mtpa.

The company had in 2007 told the government that it would be able to mine 20 mtpa of coal from the Moher and Moher Amlohri blocks and another 5 mtpa from Chhatrasal through use of latest mining technologies. The total 25 mtpa was 9 mt more than the UMPP's requirement and was sought for use in the company's other power plant at Chitrangi.

The company in its recent letter said it had earlier assumed that Sasan would require 16 mtpa but after commencing mining operations, it felt the  requirement would be 19 mtpa.

Reliance Power didn't respond to an email from ET seeking comment.

The UPA government had in 2010 allowed diversion of the coal as a special dispensation to Reliance Power, but the current NDA government in May issued an extraordinary gazette notification to cancel allocation of the Chhatrasal coal block and withdrew the dispensation to use excess coal in Moher.

The notification said the decision was based on a Supreme Court directive that disallowed diversion of surplus coal from mines attached to UMPPs.

In its letter to the coal ministry, Reliance Power said the company has signed power purchase agreements covering the entire capacity of the Sasan project, which depends on coal supply from the Moher blocks. The company said the UMPP may consume coal beyond 16 mtpa and the present mine plan permits mining 20 mtpa.

The coal ministry has sought comments from the power ministry and Coal India's technical arm, Central Mine Plan and Design Institute, on the issue.

As per its earlier mine plan approved by the government, RPower had the right to use 4 mtpa excess coal in the two blocks in its 21,000-crore Chitrangi power plant.Sasan ultra mega power project (UMPP)

source: http://economictimes.indiatimes.com