Tata defies state, to give RInfra only 200 MW | mumbai | Hindustan Times
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Tata defies state, to give RInfra only 200 MW

mumbai Updated: May 18, 2010 00:42 IST
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The dispute between Tata Power Company and Reliance Infrastructure is far from over.

Tata Power Company (TPC) issued a statement on Monday, brushing aside the state’s decree to supply 360 MW to Reliance Infrastructure (RInfra), saying it will only supply 200 MW at regulated rates and that too until June 30.

TPC said from June 30, instead of supplying 200 MW to RInfra, it will take over 4 lakh consumers of RInfra, which will take care of RInfra’s energy requirements.

“We believe these suggestions will help serve the consumer of Mumbai within the framework of achievable long term solutions,” the statement said.

The government said that it will hold talks with both parties to find a solution. “Tata has informed us that it won’t supply 160 MW to RInfra. We will talk to them and ensure that the consumer is not affected,” Energy Secretary Subrat Ratho said.

RInfra said it was looking into the proposal. “We will study the proposal communicated by Tata Power and see whether it is implementable (sic),” a company spokesperson said.

The State Load Dispatch Centre, which distributes power from a common pool, told the government on Sunday that it would not divert the 160 MW from RInfra as TPC wanted. How much power RInfra’s consumers now get from TPC will depend on what the state does and what Maharashtra Electricity Regulatory Commission (MERC) decides.

The feud between the two power distributors dates back to September 2009 when TPC announced it could no longer supply RInfra with 360 MW daily, as promised, because it needed at least 160 MW for its own consumers in the same areas.

This had forced the state to step in. The Energy Secretary had shot off a letter to TPC asking it to continue supplying 360 MW to RInfra daily, until July, when demand traditionally sees a dip because temperatures fall and the monsoon sets in.

“The decision continues to ignore the needs of our consumers who have switched over from RInfra, is preferential to one set of Mumbai consumers against the other and is supporting an inefficient distributor,” TPC said on Monday.

The TPC also criticised the government saying although the company had been doing its bit to find a solution there was no adequate response.