Have begun production from coal blocks: R-Power to IMG

On day two of captive coal mines review by an inter-ministerial group (IMG), Reliance Power today said it has begun production ahead of schedule from its blocks Moher and Moher-Amlohri extension in Madhya Pradesh.

The two blocks are meant to be used as fuel source for the 4,000 MW Sasan Ultra Mega Power Plant and are under the scanner of the IMG reviewing the status of coal block allocation.

"We have informed the IMG that coal production at Moher and Moher-Amlori Extension coal block has already commenced. We have also told them that the coal production has started ahead of schedule," R-Power CEO J P Chalasani said.

He was speaking to reporters here after presenting Reliance Power's views to the IMG as the Anil Ambani Group firm was issued a show-cause notice in May this year for delay in developing the two blocks.

Bhushan Steel, Tata Sponge Iron and GVK Power are some of the other firms that presented their side of the story on the delays to the IMG today.

Yesterday, the panel had heard from 10 firms, including Monnet Ispat, Electrosteel, Usha Martin, Adhunik Alloys and Power, Jayaswal Neco and Corporate Ispat, on the reasons for the delay in developing their mines.

"We have to say it is the fastest coal production for any greenfield project in this country till date," Chalasani said about the production that began on Monday from the two coal blocks. They were allocated to Sasan UMPP which the company had got through competitive bidding in August 2007.

National auditor CAG's report last month said the government decision to allow the use of surplus coal from blocks allotted to Sasan UMPP for other projects of Reliance Power has resulted in an undue benefit of Rs 29,033 crore to the company.

Chalasani said the first unit of Sasan UMPP will be commissioned ahead of schedule.

"As far as end-use plant is concerned, we have informed that Sasan is our end-use plant which is going ahead of schedule. First 660 MW unit, which is to be commissioned in December, is ahead of the schedule," He said.

Moher block has a geological reserves of 402 million tonnes (MT) of coal, while Moher-Amlohri Extension has 198 MT of coal.

Tata Sponge Iron Chief Operating Officer Ujjwal Chatterjee said, "The major reason for delay was land acquisition, forest diversion and clearances. There was a moratorium imposed for environment clearances and there was a court case for land acquisition."
Tata Sponge Iron was allocated Radhikapur East coal block in Odisha on February 7, 2006. The block has an extractable reserve of 105.24 MT.