The Comptroller and Auditor General of India (CAG) has asked the union Power Ministry to file a reply on the issue of allowing Reliance Power to use surplus coal from its 4,000 MW Sasan project in Madhya Pradesh to an another project in the state.

Power Secretary P Uma Shankar said that the ministry has received CAG comments and the ministry will reply to them after examination. Shankar did not provide more details but the sources say that the CAG as asked the power ministry to explain why RElaince was allowed to sue surplus coal form Sasan project in another project in Chitrangi in Madhya Pradesh.

A spokesperson for Reliance Power clarified that the decision taken by the Empowered Group of Ministers (EGOM) to allow the use of incremental coal dos not cause any loss to the exchequer and it also does not bring any undue benefit to the company.

The spokesperson also said that no commercial condition was changed after the awarding of the project to the company. The EGoM had allowed use of surplus coal from Sasan blocks in the Chitrangi project in 2008.

The company said that "the Ministry of Power has confirmed that there is no CAG report on the EGOM decision regarding use of incremental coal from coal blocks allotted to Reliance Power''s UMPP. The Ministry of Power has further clarified that only certain queries have been raised, which are being examined and will be answered by them."