Indian Coal Ministry cancels Chhatrasal Block of Sasan UMMP

The Coal Ministry cancels Chhatrasal Coal block of Reliance Power as the company has been extracting surplus coal from the block which were allotted for 4,000 MW Sasan Ultra Mega Power Project (UMPP).

The ministry canceled the block in view of the Supreme Court’s (SC) order in Aug’14 to ban the diversion of all coal blocks allotted for UMPPs. The ministry has decided to cancel Reliance Power’s license for Chhatrasal Coal block and de-allocate the block very soon.

Three blocks were allotted to Reliance Power to extract 16 MnT of coal required in Sasan UMPP. However, the company has been producing about 9 MnT more coal after the permission from the government. Reliance Power was allowed by the ministry in 2008 to use extra coal in other projects.

The ministry’s decision also stops the use of surplus coal from rest of the two mines, Moher, Moher-Amlori which was being utilized for other plants. The ministry had earlier given permission to Reliance Power to partly fire its Chitrangi Project by utilizing 9 MnT of Coal from Sasan Project that would remain after feeding the UMPP. Currently the ministry is examining the permitted mine plan for revision or to ask Reliance Power to sell the surplus coal to CIL at a notified price.

On 24 Sep’14, SC gave verdict to de-allocate all Coal blocks, except those which were allotted to UMPPs & PSUs and were not allied with any joint venture. The SC spared 12 Coal blocks related to UMPPs, out of which, 10 belonged to NTPC and the rest two were attached with the Sasan project. The Sasan Project was allotted three blocks in 2007 namely, Moher, Moher-Amlori Extn and Chhatrasal block located in Madhya Pradesh.

Blocks Allotted to Sasan Project

Quantity in MnT