In a key courtroom tussle, the Centre has defended its decision allowing Anil Ambani-controlled Reliance Power to use captive coal for any purpose other than generating electricity for the 4,000 mega watt Sasan Ultra-Mega Power Project (UMPP).
In a recent affidavit filed before the Supreme Court where Tata Power has challenged a Delhi High Court judgment upholding the government decision, the under secretary to the ministry of power justified diversion of coal on two grounds.
A bench headed by Justice G.S. Singhvi would hear Tata Power's appeal and consider the affidavit on Monday.
It first questioned the company's locus standi as, according to the government, Tata Power had waived its right by not extending the bid. The Centre also argued that coal diversion was allowed on a request from the chief minister of Madhya Pradesh following an acute power shortage.
The Centre rejected the Tatas' charge that it had favoured the Anil Dhirubhai Ambani Group.
In April, 2009, a division bench of the Delhi high court had dismissed Tata Power's petition after observing that the company had no position to file this petition as it had left the bidding process in between.
But Tata Power claimed before the SC that the government cannot change the terms as it "disturbed the fairness".