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SC issues notices to R-power, Centre on coal usage issue
PTI
Last Updated IST

A bench comprising Justices G S Singhvi and A K Ganguly issued notices to the Centre, Reliance Power and 15 other respondents.

The apex court directed all parties including the ADA group firm, Ministry of Coal, Ministry of Power and Power Finance Corporation to file replies within 12 weeks and posted the matter for hearing in January.

The directive came after senior advocate Harish Salve, appearing for the Tata Power, submitted that the notice has not been issued yet by the apex court to the respondents including R-Power, the Centre and those who had participated in the bidding process for ultra mega power projects.

Salve further said that the centre has filed its reply in this case, although the notice was not issued by the apex court. He later requested the court to hear the case, but the bench declined saying, "we would hear some other day".

Meanwhile, senior advocate Soli Sorabjee, appearing for R-Power, submitted a press statement issued by Tata Power after the last hearing and said that the company should refrain from issuing such statements.

The Bench then told Salve, "please advice your client (Tata's) not to issue such press statement."

Tata Power has challenged a decision by an Empowered Group of Minister (EGoM), which had allowed R-Power to use excess coal from the captive mines meant for the Sasan project in Madhya Pradesh for another 4,000-MW project at Chitrangi, in the same state.

Earlier, in its affidavit, the government rejected Tata Power's allegation that it favoured R-Power on use of coal from mines alloted to Sasan Power Project. It requested the court to reject Tata Power's petition, terming it "misleading and erroneous".

The government further submitted that Tata's challenged EGoM's order on a totally false basis.

On the allegation that Tata was not informed that the coal of the Sasan UMPP would be allowed to be used for another power project, the government said that it had informed all the bidders of the project.

However, in its rejoinder to the government's reply, Tata group firm has said the bidding process of the Sasan was never "meant or intended to vest" the successful bidder with the right to get extra coal of 9 million tonne per annum, to be used by R-Power for developing other power projects.

Earlier, in 2009, the Delhi High Court has rejected the petition Tata Power on this by observing that it has suppressed the information.

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(Published 08 November 2010, 18:43 IST)