‘Tata Power had almost finalised deal’
Reliance Infrastructure (R-Infra) has claimed in its affidavit on the power tussle submitted to the Bombay High Court that the Tata Power Company (TPC) had almost finalised a Power Purchase Agreement (PPA) with it in April 2009 for supplying 500 mega watts (MW) of power.Updated: Jun 08, 2010 01:16 IST
Reliance Infrastructure (R-Infra) has claimed in its affidavit on the power tussle submitted to the Bombay High Court that the Tata Power Company (TPC) had almost finalised a Power Purchase Agreement (PPA) with it in April 2009 for supplying 500 mega watts (MW) of power.
Tata Power reneged on its commitment after the Supreme Court held that generating companies, in the absence of a PPA, were not obliged to supply power to any company, the affidavit has stated.
The affidavit was filed last week in reply to a petition filed by Tata Power seeking quashing of the state’s May 15 order asking it to supply 360 MW to R-Infra without a PPA.
TPC had instructed the state load despatch center to stop supply of 160 MW from the midnight of May 17.
Tata Power claims it needs 160 MW of the power it was asked to supply to Reliance for consumers in Mumbai who have shifted from Reliance’s distribution network.
In its affidavit, R-Infra has stated that since its inception, it has sourced all its power requirements from TPC.
Till recently, it says, TPC insisted that R-Infra buy from it all the electricity it needed, and when, in 2003, it tried to enhance the capacity of the Dahanu Thermal Power
Plant (Reliance’s power-generating facility), TPC had objected to it.
Denying that R-Infra wasn’t willing to sign a PPA with Tata Power, Surendra Khot, authorised signatory for R-Infra, has stated that negotiations were on between the two companies from 2006, and several drafts were exchanged.
According to him, R-Infra had in April 2009 given up its claim of 762 MW and a PPA for supplying 500 MW was almost executed between the companies while the dispute was pending before the apex court.
R-Infra has alleged that TPC has decided not to continue power supply to it “taking into account commercial factors.”
First Published: Jun 08, 2010 01:16 IST