The government today decided to de-allocate the Chhatrasal coal block in Madhya Pradesh that supplied coal to Reliance Power's Sasan ultra mega power project (UMPP).
The Chhatrasal coal block, along with Moher and Moher Amrohi, supply coal to the Sasan UMPP but the previous government had allowed the project to divert some of its excess supply towards other end uses.
Following this, Reliance Power was diverting some of Chhatrahal's coal towards its upcoming Chitrangi power plant.
The Supreme Court had taken a dim view of this practice in its landmark judgment when it cancelled allocations of 209 coal blocks around the country but had chosen to spare the de-allocation to UMPPs.
Today, the Coal Ministry said that it had reconsidered the issue keeping in view the SC's judgment and had thus decided to deallocate the block.
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