Coal ministry approves mining plan for Sasan

Mining plan for Moher and Moher-Amlori Extension coal block relating to Sasan Power Ltd for Sasan Ultra Mega Power Projects was approved by the Ministry of Coal earlier this month, an official source said.

Sasan Power Ltd is a Special Purpose Vehicle (SPV) set up by Power Finance Corp for the Reliance Power's 4,000-Mw Sasan Ultra Mega Power Project.

The coal from the Moher-Amlori coal block would be used to generate power for Sasan UMPP.

As per the conditions of the plan, the mining company has been asked to take all precautions regarding safety of mine workers and the additional land to be acquired, which would not encroach any other coal block.

Reliance Power bagged 4,000-Mw Sasan UMPP in July last year on re-invitation of bids, the company matched the tariff of Rs 1.20 per unit earlier quoted by the original winning bidder, a consortium of Singapore-based Globaleq and Lanco Infratech.

Following the cancellation of the project award to Lanco consortium, Sasan Power Ltd had asked three other bidders RPL, NTPC and Jaiprakash Associates to submit fresh bids. While RPL submitted a revised bid, NTPC and Jaiprakash Associates did not change the prices.