Reliance Power has clarified on the Comptroller and Auditor General's (CAG) reports on the privatisation of the Delhi airport, ultra mega power projects and coal block allocations.

The firm has said that surplus coal has been made possible through use of advanced coal mining technology and large capital expenditure.

"Conventional mining methods would result in this coal remaining underground a national wastage," the firm has stated in a release.

The decision to permit use of Surplus Coal from Sasan UMPP Coal Blocks for power generation has been ratified by EGOM on two occasions (once in 2008 and again in 2012), the company has stated.

"CAG's recommendation of reviewing allocation of coal blocks of Sasan UMPP has already been implemented by Government of India.

Government's review of CAG's recommendation in 2012 included obtaining an opinion from Ld Attorney General of India. The coal mines allotted to UMPPs are the only coal blocks allotted through tariff based competitive bidding process so far in India.
Reliance Power had no role in allotment of coal reserves to Sasan UMPP Coal Blocks allotted months before bid submission in December 2006," the firm has stated. It has also said that comparison between Sasan and Chitrangi tariffs to quantify benefits is misleading.

"No two projects can have the same tariff even if coal source is the same. Surplus coal has been made possible through use of advanced coal mining technology and large capital expenditure, Conventional mining methods would result in this coal remaining underground a national wastage," the company has stated.

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