CAG report on power: 'Tata, Reliance Power favoured'

New Delhi: The CAG report on Ultra Mega Power Projects (UMPP) on Friday said that Reliance Power and Tata benefited in the Sasan Ultra Mega Power Project, the country's first domestic, coal-based project.

It said that the government gave Reliance Power the permission to use excess coal from three blocks allocated that had been allocated for the power project and that this was not only a violation of the bidding process but also benefited Reliance Power.

Reliance Power had reportedly said at the time of the award of contract that since it would be able to use 20 million tonnes from the two blocks, there would be sufficient coal for the Sasan UMPP.

The report said that Reliance Power was allowed to use excess coal from the blocks allotted for the Sasan power project in violation of bidding norms.

The report said that the allocation of the third coal block - Chhatrasal - must be checked to ensure fair play.

"Audit has estimated the financial benefit that will accrue to the project developer on the basis of comparison of tariff of Sasan project with that of Chitrangi (the third coal block). The overall financial benefit to Reliance Power due to impact of difference in tariff works out Rs 29,033 crore with a net present value of Rs 11,852 crore," the report said.

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