Tata questions letting RPower divert Sasan coal

Tata Power Company has moved the Delhi High Court,challenging the governments 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.

Terming the governments 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. Besides,it also sought documents of other consequential contracts signed by them including power-purchase agreement,as it claimed that other bidders were not aware of the provision to use coal from captive mines for other projects.

Arbitrary and illegal actions of the respondents (coal ministry and PFC) 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 and changes the entire operating economics of Sasan UMPP, TPC said in its petition. The company submitted that as per the terms of the tender for the 3,960 MW Sasan UMPP,its three coal blocks were allocated to RPower exclusively for the plant.