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Wednesday, December 7, 2011

Indian EGoM refers coal diversion issue to attorney general

Wednesday, 07 Dec 2011

Live Mint reported that the empowered group of ministers on so called ultra mega power projects on Monday decided to refer to attorney general Goolam E. Vahanvati the issue of allowing Reliance Power Ltd to divert surplus coal from captive coal mines associated with one of its projects to other plants owned by it.

Mr Sushil Kumar Shinde power minister said that “We have discussed the issue and the matter will be taken to the attorney general for legal opinion.”

This follows the Comptroller and Auditor General of India questioning a ministerial group’s decision to allow such diversion by the Anil Ambani controlled Reliance Group firm.

After the attorney general submits his opinion, the eGoM will meet again to decide on the issue. The Monday meeting was presided over by finance minister Pranab Mukherjee and was attended by law minister Salman Khursheed, coal minister Sriprakash Jaiswal, Shinde and deputy chairman of the Planning Commission Montek Singh Ahluwalia.

A spokesperson for Reliance Power declined to comment.

Mint reported on 28 September that CAG was looking into an earlier eGoM decision to allow Reliance Power to use coal meant for the Sasan project in Chitrangi, both located in Madhya Pradesh. Reliance Power is committed to selling power generated at Sasan at INR 1.19 a unit while it plans to charge INR 2.45 a unit for power produced by its proposed 4,000MW plant at Chitrangi.

(Sourced from Livemint)

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