Coal ministry issues show cause notice to Reliance Power for delay in development of Tilaiya UMPP mines

NEW DELHI: The coal ministry has issued a show cause notice to Anil Ambani-led Reliance Power seeking reasons for the delay in development of coal blocks attached to the abandoned Tilaiya ultra-mega power project ( UMPP).

The ministry has also asked Reliance Power why its bank guarantee should not be deducted for violation of the terms of allotment of the Kerandari B&C coal blocks.

Reliance Power has been given 15 days to reply.

"Tilaiya UMPP project has received a huge setback, rendering the country deprived of power to be produced from the said project. Hence, Reliance Power/Jharkhand Integrated Power Ltd cannot be absolved of its responsibility of paying damages for non-achievement of milestones set for development of Kerandari B&C coal blocks," the notice, issued on Tuesday, said.

In April last year, Reliance Power had abandoned the project saying the host state, Jharkhand, had not co-operated with the company in acquisition of land, captive blocks and related infrastructure over the previous five years.