Reliance Power may gain as UMPP concerns ease 

Mumbai, 27 Dec, 2013: Shares of Reliance Power today rose by nearly 3 per cent on the possibility of CBI closing its preliminary enquiry to probe coal block allocation to a power project in Sasan in Madhya Pradesh run by Anil Ambani's firm.

The CBI is of the view that the allocation is a policy decision vetted by group of ministers.

CBI sources said it has come to light that use of surplus coal from the Sasan UMPP was approved on two separate occasions by two EGoMs. They said since it was a policy decision, CBI was not likely to question it.

However, they added that any final decision has not been taken over the closure and any such decision can only be taken after taking into consideration the views of the Supreme Court.

The sources said they have informed the Supreme Court about the preliminary enquiry in their status report and agency would proceed according to further directions of the apex court.

After the registration of the preliminary enquiry, ADAG spokesperson had said in a statement that "we welcome the independent time-bound enquiries by the CBI, monitored by the Supreme Court, which will clearly establish our bonafides".

It will "once and for all prove beyond doubt that we have been the unfortunate victims of a mischievous campaign of calumny and vilification conducted at the behest of our unscrupulous corporate rivals over the past 5 years," the statement said.

The allocation of coal mines to the Sasan project was done to a 100 percent government-owned company in the year 2006 when Reliance Power had not even won the project, it said adding the government disinvested its shares to Reliance pursuant to a global tender in the year 2007.

The preliminary enquiry was registered on the directions of the Supreme Court that had asked the CBI to probe 14 issues including supply of low floor buses by Tata motors to Tamil Nadu government, grant of spectrum and alleged market manipulations and hammering of stocks by Unitech.

Courtesy: The Economic Times