India's Reliance Power starts production at controversial Sasan mines

NEW DELHI, Sept 3 Mon Sep 3, 2012 5:00am EDT

NEW DELHI, Sept 3 (Reuters) - Reliance Power Ltd, controlled by billionaire Anil Ambani, has commenced coal production at Sasan mines in Madhya Pradesh state in central India six months ahead of schedule, the company said on Monday.

Reliance Power is developing a 4,000 MW project at Sasan and was allotted three captive coal blocks to fuel the project, which was bid for at a fixed rate to supply power.

Last month, a state auditor said Reliance Power gained 290 billion rupees ($5.2 billion) in undue benefit from a government decision, allowing the power producer to use surplus coal from its captive block for another project it was not meant for. (Reporting by Sanjeev Choudhary; Editing by Gopakumar Warrier)

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