Reliance Power Sasan starts coal mining

The Sasan coal mines were under the scanner of the Central auditor CAG,which last month had said that RPower had gained thousands of crores of rupees in undue benefits from the government decision,allowing it to use surplus coal from these mines for another project it was not meant for.

This is a milestone moment for Reliance. Scarcity of coal is one of the biggest challenges facing the power sector. We are developing the coal blocks to exacting international standards of operations,safety and productivity with the finest team available not only in the country but also overseas, chairman Anil Ambani said.

RPower is targeting to reach full 20 million tonne per annum capacity in four years.

We will be able to get 20 mt from these mines as a result of our efforts to optimise coal production by deploying latest and advanced mining technologies, he said.

Coal from these mines will be used to generate electricity at Sasan UMPP,the first 660 mw unit of which is expected to be commissioned towards the end of the year.

Power from the Sasan plant will be supplied to seven states at Rs 1.19 per unit,the lowest for any coal-based project in the country, chief executive J P Chalasani said.

The government had approved the mine project in March 2009,he said.

We remain committed to increasing coal production to reduce imports and save foreign exchange. We now look forward to contributing to the country’s growth through accelerated domestic coal production,leading to much-needed energy security, Chalasani added.

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