Increamental coal from coal blocks allotted for Sasan UMPP to be used for other power projects of RPL: Is it justified?

For Sasan UMPP, RPL got 3 captive blocks namely moher,moher-almohri expansion and chhatrasal coal blocks. RPL has entered into a strategic partnership with NOrth Coal Corporation ( NACC) for the development of coal blocks.A mine plan was prepared by NACC with RQP for 12MTPA. The mining plan was submitted wherein there was a proposal to enhance the capacity of the mining.

Ministry of Coal has sought reasons for arriving at proposed production of 12 MTPA from mines and to examine the scope to increase the production to 16MTPA which is the requirement projected for linked TPS.

After assurance from the company, the final approval on the mining plan was accorded on June 4, 2007. Subsequently the mining plan for Chhatrasal block for a mine capacity of 5MTPA was submiited to MOC on August 29,2008.Final approval was awaited from MOC.

Submitting the rationale behind enhancing production capacity, RPL said that NACC was consulted for optimum utilisation of coal from these mines. Based on detailed studies and using latest technologies, it was estimated that by changing the orientation of the pit layout together with utilisation of higher size mining equipments, the mine capacity could be optimised to produce 20 MTPA.

The entire optimisation was developed keeping in mind the coal requirement for a supply of 16mtpa for a period of 25 years.

The govt's decision to allow RPL to use the increamental coal for its chitrangi power plant was is challenged by6 Tata power.

tata power in its petition said that while bidding for the UMPP ,it was not known that the surplus coal could be diverted to other power plants. If at that point it would have been known, then the price would have been different too.

As such, as per EGoM the power generated from the increamental coal could only be sold by competitive bidding but in case of RPL, the compant has made some kind of long term arrangement with the MP government.

So, it is agianst the very law framed by the ministry so allowing one company to take additional benefit by using increamenatl coal is not justified and the rationale for such a decision should be probed by a high level comittee.