September 08, 2008

RPL to spend INR 3,000 crore for mines to fuel Sasan UMPP

BS reported that Reliance Power Limited is planning to invest about INR 2,500 to INR 3,000 crore over a period of 3 years to develop 3 coal mines to fuel its Sasan ultra mega power project in Madhya Pradesh.

A top official at Reliance Power said that "We have submitted the plan for the pit head mines to be developed in a strategic partnership with the North American Coal Corporation to the ministry of coal and expect the final clearance within a few months."

According to the MoU signed with Reliance Power, North American Coal Corporation, the largest lignite coal producer and among the top 10 coal producers in the US, will provide technical assistance, including evaluation of geological data, mine planning and design, supervision of mining operations and training for Reliance professionals.

Sources said that the coal mining plans of Reliance Power for the Sasan project would be one of the largest and unprecedented in India, with advanced coal handling equipment. One of the transportation vehicles of 240 tonne capacity that will be used is equivalent to the size of 4 railway wagons.

The INR 18,300 crore Sasan project is scheduled to go on stream with the first 660 MW unit of the 3,960 MW project to go on line ahead of schedule within a few years. The ultra mega power project will require about 15 million tonnes of coal annually.