"The Delhi High Court in its Order dated January 31, 2018 has granted interim relief to Butibori Thermal Power Plant (TPP) and has directed Coal India Ltd (CIL) to immediately commence the supply of coal to Unit 1 of Butibori Plant, equivalent to Annual Contracted Quantity of 1.23 million tonnes per annum through its subsidiary South Eastern Coalfields Ltd," Reliance Power said in a BSE filing.
Reliance Power has set up 2 x 300 MW Butibori Plant near Nagpur through its subsidiary Vidarbha Industries Power Ltd (VIPL), which is supplying its entire power to Reliance Infrastructure Ltd (Distribution Utility), which distributes electricity to over 28 lakh consumers in Suburban Mumbai under a long-term Power Purchase Agreement approved by Maharashtra Electricity Regulatory Commission.
While coal is being supplied to Unit 2 by Coal India through its subsidiary Western Coalfields Ltd, the supply was not commenced to Unit 1 of the Butibori Plant despite a valid Letter of Assurance (LoA) issued by the Coal India subsidiary pursuant to the recommendations of Standing Linkage Committee (Long Term) comprising of Ministry of Coal, Ministry of Power, CIL, Central Electricity Authority and Railways among others, in 2008, the company said.
The LoA had promised supply of 1.23 million tonnes per annum of coal for Unit 1, it added.
The coal supply issue was pending for nearly four years after the commissioning of the unit and commencement of power supply to Reliance Infrastructure Ltd in April 2014 under a long-term Power Purchase Agreement approved by Maharashtra Electricity Regulatory Commission.
The Delhi High Court, has noted that the Butibori Plant has fulfilled the pre-requisite of SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy, wherein Fuel Supply Agreements are to be signed with existing LoA holders, and has a case for having an FSA executed in its favour, it said.
After the directions of Delhi High Court, both units of Butibori Plant would be getting assured coal supplies from Coal India subsidiaries under 100 per cent FSA/ MoU (fuel supply agreement) and mitigate the uncertainties in supply of 600 MW quality and reliable power to citizens of Mumbai, it added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)