Tata Power Vs R-Power: SC adjourns final hearing

Supreme Court adjourned the final hearing on Tata Power's plea challenging the government approval to R-Power to use the excess coal.

The Supreme Court today adjourned the final hearing on Tata Power’s plea challenging the government approval to Anil Ambani group company R-Power to use the excess coal,mined from captive mines meant for the Rs 20,000-crore Sasan Power,for other projects as well.

A bench of justices G S Sighvi and A K Ganguly adjourned the scheduled final hearing on Tata group firm’s plea as the roster of the bench was to be changed.

The bench has listed the matter for July 14 for the next hearing.

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Tata Power has challenged the decision of an Empowered Group of Ministers (EGoM) allowing R-Power to use the excess coal from the captive mines meant for the Sasan project in Madhya Pradesh for another 4,000-MW project at Chitrangi in the same state.

Earlier in November 2010,the apex court had issued notices to the Ministry of Power,the Ministry of Coal,R-Power and Power Trading Corporation.

In August 2010,the government in an affidavit had said that Tata Power’s petition was “misleading and erroneous”.

Questioning the locus standi of Tata Power,the government had said,”The petitioner cannot allege violation of any legal right vis-a-vis tender process,as it waived its right by not extending the bid.

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However,Tata Power had refuted these allegations in its rejoinder and submitted that the bidding process for Sasan UMPP was never meant or intended to vest the successful bidder to get extra coal of 9 million tonne per annum which could be used for developing other power projects.

The Tata group firm had further said it could not be debarred from challenging the subsequent arbitrary actions of the Centre.

Sasan Power Ltd,a subsidiary of R-Power,had alleged in its affidavit that Tata Power had suppressed information while challenging the bidding process and contended that the Tata group firm had lost bid for the 3,960 MW project and has no locus standi to challenge the tender process of the UMPP.

“The entire basis of the writ petition is misconceived as all bidders were aware that there is excess coal and that excess coal could be utilised for some other purpose,” it had said.