Coal News We love to talk!

AUG 26 2014

No diversion of coal from blocks allocated for Ultra Mega Power Projects: SC

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 26th AUG 2014

The allocations of 12 coal blocks for Ultra Mega Power Projects (UMPP) would be used for it only and no diversion of coal for commercial exploitation would be permitted, the Supreme Court today observed while noting that no challenge was made before it in this regard as "competitive bidding" was held for its allocation.

The apex court also held that the issue was not challenged before it by the petitioners as competitive bidding was held for the "lowest tariff" for power for these UMPPs.

"By way of footnote, it may be clarified and we do, that no challenge was laid before us in respect of blocks where competitive bidding was held for the lowest tariff for power for Ultra Mega Power Projects (UMPPs)," a three-judge bench headed by Chief Justice R M Lodha said.

"Having regard to this, it is directed that the coal blocks allocated for UMPP would only be used for UMPP and no diversion of coal for commercial exploitation would be permitted," the bench, also comprising justices M B Lokur and Kurian Joseph, observed.

Referring to the first counter affidavit filed by Centre in January, the bench said it was the stand of the government that captive blocks were pre-identified for projects and bidders were selected as per the competitive bidding guidelines of the Ministry of Power (tariff-based bidding) and therefore, the 12 allocations to UMPPs were done by a competitive method.

"As a matter of fact, Prashant Bhushan, counsel for Common Cause, submitted since allocation for UMPPs is in accord with the opinion given in Natural Resources Allocation Reference and the benefit of the coal block is passed on to the public, the said allocations may not be cancelled," the bench noted in its verdict.


Ministry of Power Mega Power Project Ultra Mega Power Project Power MP

Related News

  • How professors at IITs are improving India's solar power efficiencies  Read more
  • Record 323 villages electrified in week ending March 13  Read more
  • Why the mega refinery partnership makes sense  Read more
  • Government to rope in nodal agencies for electric vehicle infrastructure  Read more
  • Currency note ban sends electricity bill collection in UP through the roof  Read more
  • PFC delays fund-raising plans, hopes to get Rs 22,000 crore from states participating in UDAY  Read more
  • A rooftop solar DC power system developed by IIT M gets award  Read more
  • Power plant operators surge as govt plans to boost LNG imports  Read more
  • Coal India to enhance washing capacity by 112 mt  Read more
  • SunEdison plans to offload equity in 500 MW Andhra Pradesh project  Read more