The Tata Group-promoted energy entity Tata Power Company (TPC) has acquired legal recourse against Reliance Power, which has been allowed by the government to switch coal from the captive mines of Sasan Ultra Mega Power Project (UMPP) for use in other projects.
The former has filed a request 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 insisted the court to direct the government to generate 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 significant contracts entered into between the government and the ADAG company, including power purchase agreement, as it claimed that other bidders were not conscious of the provision.