Reliance Power has received a show-cause notice from Union ministry of coal (MoC) for the delay in developing coal blocks associated with its 4,000-Mw Ultra Mega Power Project (UMPP) at Tilaiya in Jharkhand. According to the notice, Reliance Power and its subsidiary Jharkhand Integrated Power (JIPL) cannot be absolved of their responsibility of paying for damages for non-achievement of milestones set for the development of the Kerandari B & C coal blocks.
After terminating the power purchase agreement (PPA) for the Tilaiya UMPP, Reliance Power had written to the Coal Ministry for release of the bank guarantee given for the Kerandari B & C coal blocks. Reliance Power’s bank guarantee for the Kerandari B & C coal blocks is worth Rs 800 crore. The Ministry has considered of the termination of the PPA of the Tilaiya UMPP as extraneous to the development of the coal blocks. It has sought a reply from the company within 15 days on why the bank guarantee should not be deducted.
Reliance Power, a part of the Reliance Group, is India’s leading private sector power generation and coal resources company. The company has the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating capacity of 5,945 megawatts.
