Anil Ambani-led Reliance Power today said it is hopeful of receiving government approval for

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excavation of coal from the Chhatrasal mines, even though a committee of the Ministry of Environment and Forests has denied permission on ecological grounds.

The Chhatrasal coal block in Madhya Pradesh is a part of Reliance Power's Sasan UMPP.

"We understand that the issue of forest clearance for Chhatrasal coal blocks, among other mines, is being looked into by a Group of Ministers and we are hopeful of a positive outcome on the matter," Reliance Power informed the BSE.

The company also said the 3,960-MW (6x660MW) Sasan project is progressing well and is expected to be commissioned in January, 2013.

"The Moher and Moher-Amlori extension coal mines allotted to the Sasan UMPP have received all environment and forest clearances and these mines are being developed to commence production this calender year," the company added.

The Forest Advisory Committee (FAC) of the Ministry of Environment (MOEF) and Forests has denied approval for forest land diversion for developing the Chhatrasal coal block, citing that over 965 hectares of forest land that falls in the mining area has good quality forests.

The decision was taken at the FAC meeting held last month and at that time, the panel observed that the "legal status of the forest land proposed for diversion is a reserved forest".

Shares of Reliance Power were trading at Rs 91.40 apiece on the BSE, down 2.14 per cent for their previous close.