Reliance Gets Nod to Raise Coal Production for UMPP

Reliance Power gets some relief post Centre announced to extract 1.2 MnT extra coal from its Moher and Moher Amlohri coal mines in FY16.

The coal ministry has allowed Reliance Power’s Sasan Ultra Mega Power Project (UMPP) to increase coal production upto 17.20 MnT in FY16. The company can produce 1.2 MnT extra coal, which may ensure fuel availability for the plant.

Moreover, increase in coal capacity is allowed only for ongoing fiscal. Meanwhile for the coming years, the company needs to follow the government procedure.

Earlier, the coal ministry had directed to Reliance Power in June to limit annual coal production at 16 MnT pa for its 4,000 MW Sasan Ultra Mega Power Project (UMPP).

Sasan UMPP’s coal block allotments

Sasan UMPP (4,000 MW), wholly owned subsidiary of Reliance, is the world’s largest integrated power plant. Sasan UMPP, India’s first coal-based UMPP, had allotted 3 mines such as Moher, Moher Amlohri extension and Chhatrasal with aggregate capacity of 760 MnT in 2007.

In May’15, the coal ministry cancelled the allocation of Chhatrasal, saying three mines surpass the amount of coal to be used by the plant and surplus coal cannot be used by the promoter. The court also asked the UMPPs not to use surplus coal from the attached mines for commercial purposes.

Reliance had contended that the allotted coal reserves are not enough for the power plant to run at 85% PLF (plant load factor) for a period under PPA of 25 years, which is running at about 100% plant load factor now.

Post permission, Sasan UMPP would be able to sustain at 100% PLF and additionally generate 2.2 billion units of electricity. This will benefit 420 million population amongst seven procurer states comprising MP, UP, Rajasthan, Haryana, Punjab, Delhi and Uttarakhand.

On 11 Mar’16, The company moved to Delhi High Court, told a bench of Chief Justice and Justice that it is not allowed by the governmnet to continue mining after reaching 16 MnT pa in FY16. Then, it will have to shut down its UMMP. The next hearing on the matter has scheduled on 18 Mar’16.