Production in coal blocks underway, says Reliance Power

Production in coal blocks underway, says Reliance Power

 Even as the government is expected to submit its comments next week to Public Accounts Committee on CAG’s observation on coal block allocation, Reliance Power, one of the private firms involved in the raw, told the inter ministerial group that it has commenced production in two of its blocks in Madhya Pradesh ahead of schedule.

Anil Ambani-led Reliance Power was charged by the CAG report with getting undue benefits worth Rs 29,033 crore on the government allowing use of surplus coal from blocks allotted to Sasan power plant for its other projects. It is one of the 58 companies, under the CAG scanner, which faces immediate threat of de-allocation.

Moher and Moher-Amlohri extension in Madhya Pradesh will supply to coal to the 4,000 MW Sasan Ultra Mega Power Plant.

“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 after the IMG meeting.

The others among eight private firms called to make their stance clear before the IMG said major reason for the delay in commencement in production involved issues related to land acquisition, forest and environment clearances.

These companies included Tata Sponge Iron with Radhikapur East coal block in Odisha in 2006, Bhushan Steel, which was allocated New Patrapara coal block also in 2006. Bhushan Steel said it expected to begin production next year.

GVK Power and Infrastructure, which also appeared before the IMG Friday, said  production from the Seregarha coal block will take three to four years.

The government is expected to submit its comments before the PAC on September 14 on the observation made by the CAG, which has alleged undue benefits to the tune of Rs 1.86 lakh crore made to private players on account of coal block allocation to them without resorting to auction.