Sasan: R-power asks PMO to drop charges | business | Hindustan Times
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Sasan: R-power asks PMO to drop charges

business Updated: May 17, 2012 20:42 IST
Anupama Airy
Anupama Airy
Hindustan Times
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Anil Ambani-led Reliance Power Ltd has approached the Prime Minister’s Office (PMO) and the Comptroller and Auditor General (CAG) to drop the allegations over “undue benefits” to the company arising out of diversion of surplus coal from the captive mines for Sasan and Tilaiya ultra-mega power projects (UMPPs) to fuel its other plants.


The CAG in its draft report had estimated a gain of Rs 15,849 crore to Reliance Power and no gains to customers from such diversion over the 25-year life of the mines and the power projects.

In its May 7 letter to Vinod Rai, CAG, as also to principal secretary to Prime Minister, Pulok Chatterji, the company has brought to their notice the reported decisions by the empowered group of ministers (EGoM) as also a comprehensive legal review of the proposal by Attorney General of India, over permitting usage of surplus coal of Sasan UMPP in RPL’s Chitrangi project.

The EGoM, as per Reliance Power’s letter has directed that surplus coal from Tilaiya will be governed by the new policy on the usage of surplus coal. RPower also said that the Chitrangi project is still awaiting certain clearances and hence it may be premature to quantify any benefit due to sale of power using surplus coal.