State-run Northern Coalfields to surrender land to Reliance Power for Mining Purpose

State-run Northern Coalfields (NCL) agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant to Reliance Power thereby giving the Anil Ambani Group company the benefit of over Rs 6000 crore over the life of the venture.

Coal from the mines — Moher and Moher Amlohri along with another Chhatrasal block will fuel Reliance Power’s Sasan and Chitrangi projects of 4,000 mw each being built in Madhya Pradesh with an investment of Rs  36000 crore.

NCL’s decision is to give Reliance Power access to 58 million tonnes of coal worth . 6,264 crore at current prices.

NCL, a Coal India subsidiary, had denied transferring required land to Sasan Power, a subsidiary of Reliance Power, statting that  such a move would violate the Coal Bearing Areas Act, 1973. NCL reviewed its stance after a coal ministry directive to transfer surface rights to Sasan Power.

 The Coal Ministry directed NCL to identify and transfer land beyond requirement to Sasan Power. However, confusion still persists as the Coal Bearing Areas Act does not provide for de-notification of acquired land.

The coal ministry in consultation with the law ministry had earlier transferred one block to Tata Steel from Central Coalfields. Eight other blocks are being sought by private companies, including Tata Steel, Essar Power, GVK Power, Adhunik Power and Arcelor Mittal.