Judgement of the Delhi High Court regarding the notification issued by the Ministry of Coal for the cancellation of Chhatrasal coal block for Sasan Ultra Mega Power Project, Singrauli, Madhya Pradesh, 06/06/2018

  • 06/06/2018

Judgement of the High Court of Delhi in the matter of Reliance Power Ltd. & Others Vs Union of India & Others dated 06/06/2018 regarding cancellation of coal block Chhatrasal for the Sasan UMPP and the supply of surplus quantity of coal upto a maximum of 9 Million Metric Tons per annum from the coal mines of Moher, Moher-Amlohri and Chhatrasal for the 3960 MW thermal plant owned and managed by Chitrangi Power Pvt. Ltd, a wholly owned subsidiary of Reliance.

Reliance states that before the bids there was a clear representation by the respondents that 100% equity of SPL would be transferred to the successful bidder. It is averred that at such time, SPL had allocation of three coal blocks: Moher, Moher-Amlohri Extension and Chhatrasal, having total reserves of 760 Million MT and that the bid was based on these representations that these mines have been allocated to SPL and will be available for the UMPP.

Additional Solicitor General on behalf of the Respondents has made detailed submissions and one of the submission made before the Court is that Sasan UMPP is a pithead power plant and has a dedicated coal mine and even if there uncertainty in the supply of coal by Coal India Ltd./SCCL it would not lead to the shutting down of plants. Taking into account the submissions made Delhi High Court dismisses the Application.