The Tata Group-promoted energy entity Tata Power Company (TPC) has sought legal recourse against Reliance Power, which has been permitted by the government to divert coal from the captive mines of Sasan Ultra Mega Power Project (UMPP) for use in other projects.
The former has filed a petition in the Delhi High Court claiming that the government’s decision was “arbitrary” and “illegal”. TPC submitted that as per the terms of the tender for the 3,960 MW Sasan UMPP, its three coal blocks – Moher, Moher-Amlori Extension and Chhatrasal – were allocated to RPower for exclusive of the plant.
It has urged the court to direct the government to produce all records along with the letter of intent issued to Reliance Power on August 1, 2007 for the Sasan UMPP. TPC has also sought documents of other consequential contracts entered into between the government and the ADAG company, including power purchase agreement, as it claimed that other bidders were not aware of the provision.