Reliance Power announced on Monday that it has achieved full fuel security for its 2 x 300 MW Butibori Thermal Power Plant (TPP) in Maharashtra following directions were given by the Delhi High Court state miner Coal India Ltd (CIL).

The Butibori plant is supplying 600 MW power to Reliance Infrastructure Mumbai Distribution under a long term power purchase agreement for the benefit of over 28 Lakh consumers in Mumbai, the company said in a release.

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“Delhi High Court in its order dated January 31, 2018, has granted interim relief to Butibori Thermal Power Plant and has directed CIL to immediately commence supply of coal to Unit 1 of Butibori TPP, equivalent to annual contracted quantity of 1.23 million tonnes per annum through its subsidiary South Eastern Coalfields Ltd,” it said.

Reliance Power has set up the Butibori plant near Nagpur through its subsidiary Vidarbha Industries Power Ltd that is supplying its entire power to Reliance Infrastructure Ltd, which distributes electricity to over 28 lakh consumers in suburban Mumbai under a long-term Power Purchase Agreement approved by the Maharashtra Electricity Regulatory Commission.

“While coal is being supplied to Unit 2 by CIL through its subsidiary Western Coalfields Ltd, the coal supply was not commenced to Unit 1 of the Butibori Plant despite a valid Letter of Assurance (LoA) issued by CIL subsidiary pursuant to the recommendations of Standing Linkage Committee (Long Term) comprising of Ministry of Coal, Ministry of Power, CIL, Central Electricity Authority and Railways among others, in 2008, promising supply of 1.23 million tonnes per annum of coal for Unit 1,” the statement said.

The issue of supply of coal to Unit 1 was pending for nearly 4 years after the commissioning of the unit and commencement of power supply to Reliance Infrastructure in April 2014 under a long-term Power Purchase Agreement approved by the Maharashtra Electricity Regulatory Commission, it said.

“The Delhi High Court has noted that the Butibori Plant has fulfilled the pre-requisite of Shakti (Scheme for Harnessing and Allocating Koyala Transparently in India) policy, wherein Fuel Supply Agreements (FSAs) are to be signed with existing LoA holders, and has a case for having an FSA executed in its favour,” it said

After the directions of the Court, “both units of Butibori Plant would be getting assured coal supplies from CIL subsidiaries under 100 per cent FSA/ MoU and mitigate the uncertainties in supply of 600 MW quality and reliable power to citizens of Mumbai,” it added.

Last month the company announced that the Butibori plant generated 1,061 million units of electricity operating at a plant load factor (PLF) of 80 per cent.