SC to hear Tata petition on R-Power's coal use in July

The Supreme Court will start the final hearing in July on the dispute between the Tata group and the Centre over permission to Reliance Power (R-Power) to divert excess coal from the Rs 20,000 crore Ultra Mega Power Project (UMPP) in Sasan to its other projects.

A Bench of Justices GS Singhvi and AK Ganguly today directed the government, Tata Power, R-Power and other parties to complete their pleadings and directed to list the matter in the third week of July for the final hearing.

The apex court is hearing a petition by Tata Power, challenging the government's decision to allow R-Power to use coal from mines allotted to the Sasan project for its other projects, alleging favour to the Anil Ambani group firm.

During the last hearing, Sasan Power (SPL), a subsidiary of R-Power, had filed an affidavit alleging that Tata Power had suppressed information while challenging the bidding process of the UMPP.

It said that as Tata Power had lost the bid for the 3,960 Mw project, it had no locus standi to challenge the tender process of the UMPP.

"The entire basis of the writ petition is misconceived as all bidders were aware that there is excess coal and that excess coal could be utilised for some other purpose," SPL said.

It also submitted that Tata Power was aware that there was enough coal in Mohar, Mohar-Almori and Chatrasal coal blocks alloted to the UMPP and as per the conditions of allocation, the additional coal "could be sold, transferred, utilised for other work subject to government's permission".

"Tata Power choose to walk out from the tendering process midway and ceased to be a bidder of its own volition. Tata Power has no locus standi to challenge the permission given by the government for utilisation of coal to some other projects," said SPL.

It further said that huge investment has been made in the project and any interference at this stage would be "gravely prejudicial" to it and requested the apex court to dismiss the petition filed by Tata Power.

In November, the apex court had issued notices to the centre, Ministry of Power, Ministry of Coal, R-Power and Power Trading Corporation on the Tata petition.

It challenged the decision of the Empowered Group of Ministers (EGoM), allowing 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.

In August, the government said that Tata's petition was 'misleading and erroneous'.

It had also questioned the locus standi of Tata Power, saying, "The petitioner cannot allege violation of any legal right vis-a-vis tender process, as it waived its right by not extending the bid."