MoP allows RPL to mortgage coal blocks associated with Sasan UMPP

An interministerial committee set up by the MoP has allowed Reliance Power Limited (RPower) to mortgage coal blocks associated with the 3,960 MW Sasan ultra mega power project with foreign lenders of the project. Lenders to the Rs 194 billion project include the Export Import Bank of the United States, the China Development Bank and the Export Import Bank of China. The committee has stated that the mortgage of the blocks does not violate the rules of the contract documents and the PPA for the project. Meanwhile, in May 2016, the Ministry of Coal had rejected RPower’s proposal to mortgage the blocks.

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