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Home News Power Sector News Mumbai - Tata Power Company, R-Infra blame each other

Mumbai - Tata Power Company, R-Infra blame each other

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MumbaiMumbai power supply private utilities Tata Power and Reliance Infrastructure, which are engaged in a power purchase dispute, are sparring once again with R-Infra accusing the other of selling electricity to buyers outside the city. Tata Power Company (TPC) responded to the allegation calling R-Infra 'an irresponsible' power distributor causing unnecessary burden to the consumers of Mumbai.

R-Infra alleged that TPC was selling 100mw to buyers outside Mumbai. The Maharashtra cabinet is likely to discuss the matter. TPC had threatened to suspend sale of 500mw power to R-Infra on the ground that the latter refused to sign a power purchase agreement. The Supreme Court too had given TPC a favourable order, but the state government had intervened and persuaded TPC to continue supply to R-Infra till April 30.

"TPC is selling 100mw power outside Mumbai, which is evident from the load despatch centre documents available with Powergrid Corporation of India," R-Infra CEO Lalit Jalan told.

"This is a violation of all ethical and legal norms that TPC is supposed to provide power for the citizens of Mumbai. They are even defying the announcement made in the Assembly by chief minister Ashok Chavan recently that the government would not allow any power generator to sell power outside the city when it is reeling under power scarcity," Jalan said.

But TPC said there is nothing unethical or illegal in selling a part of the power generated from its unit 8 and most of it is sold to the state distributor Mahavitaran only.

"We have an agreement with the state government with the approval of the regulator that we could sell 50 per cent of the power generated in unit 8 outside. While selling it to our own trading company (TPTCL), we made it clear that the first preference will always be there for Maharashtra only. But if Mahavitaran doesn't want, we have no other way, but to sell it outside," TPC executive director for finance S Ramakrishnan said.

"Whenever it is not needed by Mahavitaran during the non-peak hours, TPTCL is selling it outside," he added.

Source - Economic Times

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