CAG’ report of 2012-13 on “ Ultra Mega Power Projects under Special Purpose Vehicles says:
8. Financial benefit to Project Developer
Three coal blocks viz. Moher, Moher-Amlohri Extension and Chhatrasal were allocated to Sasan UMPP to meet its coal requirement of 16 Million Tonne per annum. In November 2007, Chief Minister of Madhya Pradesh requested the Prime Minister, to allow RPL to use the surplus coal from the captive blocks of Sasan UMPP in the power plant being set up by RPL at Chitrangi tehsil in the vicinity of these Report No. 6 of 2012-13 x Ultra Mega Power Projects under Special Purpose Vehicles mines.
The matter was referred to EGOM and the issue was deliberated in the two EGOM meetings held on 28 May 2008 and 14 August 2008. EGOM recommended that RPL be allowed to use the surplus coal from blocks allotted to Sasan UMPP for its other projects where power was sold through tariff based bidding. Accordingly, the permission was accorded.
While this decision resulted in financial benefit of `29,033 crore with a net present value (NPV) of `11,85Ϯ crore to the Project Developer, a detailed analysis of the chronology of events which took place in granting permission for use of surplus coal at Chitrangi Project from the coal blocks allocated for Sasan Project, also revealed as under:
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