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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Monday, September 13, 2010

SC to hear Tata plea on R-Power's coal usage on Monday


The Supreme court will hear on Monday Tata group's plea challenging the government nod to Anil Ambani group firm R-Power to use coal from captive mines for projects other than the Rs 20,000 crore Sasan Power project.The Centre has questioned the plea on 'locus standi'. During the hearing last week, Tata Power had said that it did not waive its right as a bidder by not participating in the entire process for Sasan, admitting though that it could not have matched the successful bid of Reliance Power.
On its part, the government has questioned the locus standi of Tata Power, saying, "the petitioner cannot allege violation of any legal right vis-a-vis tender process, as it waived its right by not extending the bid."Tata Power's petition would be heard by a bench comprising Justices G S Singhvi and Asok Kumar Ganguly. 
Tata group firm has challenged decision of an Empowered Group of Minister (EGoM) which had allowed R-Power to use 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.Tata further submitted that it could not be debarred from challenging the subsequent arbitrary actions of the Centre.
"The petitioner having participated in the entire bidding process cannot be said to have waived its right as a bidder by not extending its bid," it said, adding that decisions subsequent to the tendering process would make the award of contract "meaningless".
However, earlier, in its affidavit before the Apex Court, the government had rejected Tata Power's allegation that it favoured ADAG group firm over usage of coal from mines alloted to Sasan Power Project and had requested to reject the petition terming it as "misleading and erroneous".The government further submitted that Tata's approached the court challenging EGoM's order on a totally false basis and "gives a totally misleading and erroneous impression".
On the allegation that Tata was not informed that the coal of the Sasan UMPP would be allowed to be used for another power project, the government said that it had informed all the bidders of the project.However, in its rejoinder over government's reply, Tata group firm had said the bidding process of the Sasan was never "meant or intended to vest" the successful bidder with the right to get extra coal of 9 million tonne per annum, to be used by R-Power for developing other power projects. 

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