Govt may discuss usage of extra coal at Sasan on Thursday

The power and coal ministries are expected to discuss on Thursday the modalities on how Reliance Power should utilise surplus coal from the blocks allocated for Sasan UMPP (ultra mega power project), for another project in Chitrangi.

The meeting would be related to coal blocks of 3,960 MW Sasan (UMPP) in Madhya Pradesh. "... They (power ministry) will hold a meeting on December 27 to discuss a suitable mechanism to ensure that conditions stipulated by the empowered group of ministers (EGoM) regarding surplus coal from Sasan UMPP are not violated by the developer," according to an official document.

The meeting is expected to be taken by ICP Kesari, joint secretary, power ministry, who also looks after UMPPs. In April, an EGoM, headed by the then finance minister Pranab Mukherjee, had decided not to review the earlier decision allowing Reliance Power to use excess coal from the Sasan UMPP mines for the Chitrangi project, also located in Madhya Pradesh.

"We stand by that decision (in 2008)... We cannot review decisions of the past but we can certainly look at the implication of those decisions in changing circumstances and what we need to do in the future," former law minister Salman Khurshid had said after the EGoM meeting on April 28.

Khurshid had said the Attorney General had given an opinion that "surplus coal is such coal... that is available after satisfying the needs of a UMPP". "Now what to do with the surplus coal is the question and this is to be seen in a context that you have not to discourage a developer from producing coal".

Reliance Power bagged the 3,960 MW Sasan UMPP in 2007 through competitive bidding. The company was alloted Moher, Moher-Almohri and Chhatrasal captive coal mines for developing the project.

At the peak, these blocks' can produce up to 25 million tonnes of coal per annum. Moher, Moher-Almohri can produce 20 million tonnes, while Chhatrasal can produce 5 million tonnes.