Tata plea against coal diversion by R-Power misleading: Govt

Rejecting the allegation that it favoured ADAG group firm Reliance Power for usage of coal from mines alloted to the Rs 20,000 crore Sasan Power Project, the government has asked the Supreme Court to reject the petition of Tata Power as "misleading and erroneous".

It 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."

In an affidavit filed before the apex court, the government said that the petition challenging the use of coal for projects other than 4,000-MW Sasan Ultra-Mega Power Project (UMPP) was filed on a totally false basis and "gives a totally misleading and erroneous impression".

The Tata petition is scheduled to be heard by the apex court on August 25.

Tata Power is challenging the decision of 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.

The government further submitted in its petition that Tata has given no explanation why it did not extend its bid.

"The petitioner did not respond in absence of any specific reasons of doing so," said the government in its 16-page-long affidavit.

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.

"The communication dated May 25, 2007, was sent to all bidders for extension of the bids and it was mandatory condition that the bids had to be extended... The bidding process was still in progress and the petitioner was required to extend the bid to continue to participate in the process," the government said.

It further submitted that two bidders, Tata and Jindal Steel and Power, had not responded to its letter and opted out of the process.

"Accordingly, the bid of the petitioner (Tata) was invalidated and it was no longer a part of the bidding process," the government said.

The government further said that it took a decision on diversion of coal only after the Chief Minister of Madhya Pradesh wrote a letter to the Prime Minister on November 2, 2007, pointing out excess availability of coal at the Sasan UMPP and requested using some of it in the Chitrangi power project alloted to R-Power.

This letter was forwarded to the EGoM, which after due consultation with the Ministry of Coal and other nodal agencies, allowed it.