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Coal Ministry asks Reliance Power to cut production from Sasan’s coal mines

The Ministry of Coal has asked Reliance Power Ltd to revise the production plan from two mines allocated to the Sasan ultra mega power project to 16 million tonne per annum and present a new mining plan for the same.

The mining plan for the two mines – Moher and Moher Amlohri Extn – is currently 20 million tonne per annum. Production has already started from these mines.

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In a letter to Sasan Power Ltd, the Coal Ministry said, “Sasan Power Ltd is required to revise the mining plan of Moher and Moher Amlohri coal blocks from the preset 20 million tonne per annum to 16 million tonne per annum mine capacity so as to conform to the coal requirement of 16 million tonne per annum for the Sasan UMPP, being the specified end use plant.”

“Till the revised mining plan of 16 million tonne per annum to be submitted by the company is approved by the Ministry of Coal, Sasan Power Ltd is also directed to restrict the coal production to the level of Sasan UMPP requirement and not in any case go beyond 16 million tonne per annum from Moher and Moher Amlohri Extn coal blocks,” the letter added.

Last month, the Ministry had de-allocated the Chhatrasal block which was given to the Sasan UMPP, as coal from the block was being diverted to its Chitrangi power plant as per a directive from the previous UPA government.

The NDA Government revisited the provision soon after Reliance Power announced its decision to terminate the power purchase agreement for the Tilaiya UMPP in Jharkhand.


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