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Coal Ministry directs Rpower to stop mining at Sasan project blocks

09 Oct 2012 Evaluate

The Coal Ministry has directed Anil Dhirubhai Ambani-owned Reliance Power (Rpower) to stop mining immediately at coal blocks attached to the company’s Sasan Ultra Mega Power Project (UMPP), as the land is yet to be legally transferred to the firm. The Moher and Moher- Amlohri blocks, given to the UMPP, are surrounded by land notified by Northern Coalfields (NCL), according to the Coal Bearing Act. A part of these lands is to be ‘legally transferred’ to Sasan Power (SPL), SPV formed by the company to implement the 4000 MW Sasan UMPP in Madhya Pradesh.

The Coal Ministry’s step of restricting the company was taken after NCL complained the former that SPL has started using the land even when official process of transferring land use rights to the UMPP are yet to be completed.

However, in its reply to the Ministry notice, Reliance Power has cited the outcome of the October 17, 2011 meeting as the reason good enough for this move. In the meeting it was ‘decided and agreed’ between all stakeholders that non-coal bearing areas would be transferred to the UMPP. Further towards this development, NCL too gave a no-objection to the proposal.

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