Government to Curb Production from Sasan’s Coal Blocks

After canceling Chhatrasal coal block of Reliance Power last month, Coal Ministry now orders Reliance Power to restrict coal production from Moher and Moher Amlohri Extn.

Coal Ministry on Wednesday instructed Reliance Power to cut coal production from coal mines allotted to Sasan UMPP from 20 MnT to 16 MnT. 

According to sources, Centre has taken this decision on grounds of Supreme Court’s verdict which came last year. Acting upon CAG’s Mar’12 report accusing the government of extravagant and whimsical allocation of coal blocks, the apex judicial of India, in its verdict dated 24 Sep’14, had cancelled allocation of 204 out of 218 coal blocks allotted since 1993.

The SC, in public interest, had not de-allocated coal blocks associated with UMPPs. However, it had clearly mentioned that commercial exploration would be strictly prohibited from these coal blocks.

Coal Ministry has ordered Reliance Power to retool and submit a new plan for production of 16 MnT of coal annually from Moher and Moher Amlohri Extn. It should be noted that currently Reliance Power is producing about 20 MnT of coal from the above coal blocks.

Along with the cancellation of Chhatrasal coal block, this move of centre will probably affect the fate of  Chitrangi Project which was to run on coal produced from Chhatrasal block and the surplus coal left after fulfilling requirement of Sasan UMPP.

Blocks Allotted to Sasan UMPP

Qty in MnT
Source- SteelMint Research