No relief for Tata over power dispute

Tata Power Company failed to get interim relief from the Bombay High Court.

The court on Wednesday refused to stay the state government’s order that TPC continues to supply 160 MW to Reliance Infrastructure (RInfra). TPC approached the court after the state stopped it from diverting 160 MW to its own consumers.

“We are conscious of the fact that small consumers will be troubled,” said Justice S.J. Kathawala.

The vacation bench of Justice Kathawala and Justice R.G. Ketkar directed RInfra and the government to file their reply by June 3 and directed TPC to file its rejoinder before June 6. The matter will be heard on June 7.

The TPC had filed a petition on Monday challenging the state’s decision asking it to supply 360 MW to RInfra till June-end and refusal of the Maharashtra State Load Dispatch Centre to reschedule 160 MW of 360 MW for TPC’s consumers from May 16.

TPC’s counsel Jaydeep Gupta argued that because of the present arrangement, the company has suffered a loss of Rs 30 crore.

RInfra’s counsel J.J. Bhat opposed the proposal saying the Maharashtra Electricity Regulatory Commission had powers to adjust equities in subsequent months if it is found that a power supplier has suffered losses. “You have said that you have suffered loss. Then what will be the higher rate at which you will supply power?” asked Justice Kathawala.

Gupta replied that the rate would be regulated by the MERC.

First Published: May 27, 2010 00:55 IST