Mumbai - SLDC snubs Tata Power, supports R-Infra

Monday, 17 May 2010 06:25 Suresh Kumar MG
TPCTata Power received a major jolt as Maharashtra’s State Load Despatch Centre (SLDC) turned down the company’s proposal to wheel 198 Mw, instead of the current 360 Mw, to Reliance Infrastructure, till June as per the instruction of state Government. SLDC does the scheduling of power. It clarified to Tata Power that it would continue to schedule 360 Mw to Reliance Infrastructure and 100 Mw to BEST till further “written instructions from the Maharashtra Electricity Regulatory Commission (MERC)”.

The state government had asked MERC to consider mechanism of cross-subsidy to prevent cherry-picking and protect the interest of subsidised consumers. SLDC’s stand brings relief to consumers of Reliance Infrastructure in Mumbai suburbs as they would be spared of power-cuts in this sweltering summer.

Tata Power last week had communicated to SLDC that from Sunday midnight it would like scheduling of 100 Mw to BEST and 160 Mw to Tata Power Distribution Company, while 198 Mw would be supplied to Reliance Infrastructure at the rate of Rs 5.90 per unit. The wheeling of 198 Mw to Reliance would be till June if the latter accepted the proposal.

Reliance Infrastructure had already rejected the proposal and decided to procure 198 Mw from the open market, in addition to the 650-700 Mw it currently draws at Rs 6.50-7 per unit.

Earlier today, Tata Power wrote to SLDC: “It is not necessary for you to wait for any specific order from MERC for implementation of the schedule (100 Mw to BEST, 160 Mw to Tata Power Distribution Company and 198 Mw to Reliance Infrastructure up to June). Accordingly, the scheduling has to be done by SLDC based on instructions of Tata Power and Tata Power Transmission Company. Further, the Maharashtra government has not given any direction to Tata Power to maintain any status quo. The state government has said that it does not seek to undermine, question or interpret any of the provisions of the Electricity Act 2003 or the apex court order in any manner, nor seeks to impose any solution on anyone.”

Tata Power sources told Business Standard that it would reply to the state government’s communication of May 14 in which the government had stated that no Mumbai power to be sold out of the city till it was in deficit.

A senior state government official said: “The government has not yet invoked Section 11 or 108. It is yet to receive reply from Tata Power. However, there can be no compromise in the government’s stand that Tata Power has to sell power only to deficient Mumbai licensees at the regulated rate. As for the timing of allocation of 160 Mw to Tata Power Distribution Company, the government has requested Tata Power to continue to supply to Reliance Infrastructure till the end of June. The government will, however, go by the advice of MERC in this regard.”

Reliance Infrastructure sources said it would await action from the government.

Source- Business standard