Tatas challenge govt on coal for Reliance Power
Tata Power Company has moved the Delhi High Court challenging the government's decision to allow Anil Ambani-led Reliance Power to divert coal from the captive mines of Sasan ultra mega power project for use in other projects.india Updated: Jan 05, 2009 21:16 IST
Tata Power Company has moved the Delhi High Court challenging the government's decision to allow Anil Ambani-led Reliance Power to divert coal from the captive mines of Sasan ultra mega power project for use in other projects. The permission was given by an extended group of ministers last August.
Terming the government’s decision as “arbitrary” and “illegal,” TPC — one of the bidders for the Sasan project — said that the government should be directed to produce all records along with the Letter of Intent issued to RPower on August 1, 2007 for the Sasan UMPP.
Officially Reliance offered no comment, but an industry official close to the group said the Tatas were raising concerns four months after the government approval, which was “strange”. “Under the letter of allocation, the decision to allow companies to sell coal from mines for uses other than for UMPPs rests with the government. So the permission to Reliance is well under the government’s jurisdiction.”
Arbitrary and illegal actions of the Respondents (coal ministry and Power Finance Corp) in granting approval to divert coal from the captive coal mines of Sasan UMPP to RPower —successful bidder — for use in other projects is completely contrary to the express terms of the Bid Documents disclosed to all the bidders in the bidding process...,” TPC said.