Government Cancels One of 3 Mines Allotted for Reliance Power's Sasan Project

New Delhi: The government has cancelled allocation of one of three coal blocks to Reliance Power's Sasan project in Madhya Pradesh.

"The government has reconsidered the issue keeping in view the judgement dated August 24, 2014, and order dated September 25, 2014 of Supreme Court ... and has decided to deallocate Chhatrasal coal block and thus hereby withdraw/ cancels the allocation letter ... in favour of Sasan Power Ltd," an official notification dated May 7 said.

The Chhatrasal coal block is one of the three captive coal blocks that were allotted to Sasan Power Ltd in 2006. The other two coal mines allocated for firing the Sasan project are Moher and Moher-Amlohri extension.

Commenting on the development, a Reliance Power spokesperson said, "We are studying the implications of the notification."

A coal ministry official said that Chhatrasal coal block has been cancelled "in the wake of Supreme Court order, saying that coal from the UMPP blocks cannot be used commercially".

Reliance Power earlier in March had said that its 3,960-MW Sasan thermal power project has been fully commissioned.

Sasan project is an integrated power plant-cum-coal mining project at a single location, involving an investment of over Rs 27,000 crore.

Coal production has already commenced from the 20 million tonnes Moher and Moher-Amlohri mines associated with the project, it had said.

Also last month, Anil Ambani-led Reliance Power announced terminating the contract for Rs 36,000-crore Tilaiya ultra mega power project in Jharkhand over inordinate delays in land acquisition.