R-Infra steps up attack on Tata Power over supply

R-Infra steps up attack on Tata Power over supply
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First Published: Wed, May 12 2010. 11 33 PM IST

Blame game:Reliance Infrastructure chief executive Lalit Jalan. Ashesh Shah/Mint
Blame game:Reliance Infrastructure chief executive Lalit Jalan. Ashesh Shah/Mint
Updated: Wed, May 12 2010. 11 33 PM IST
Mumbai: Anil Ambani-owned Reliance Infrastructure Ltd (R-Infra) stepped up its attack on Tata Power Co. Ltd by launching a website and accusing it of selling power outside Mumbai two days after declining to accept the state government’s decision to continue supply to Reliance.
Lalit Jalan, chief executive officer of R-Infra, accused Tata Power of “making money at the cost of the consumer”.
Blame game:Reliance Infrastructure chief executive Lalit Jalan. Ashesh Shah/Mint
“I don’t understand what their problem is. According to the government order, from 1 July, Tata will be surplus again,” he told reporters on Wednesday. “They don’t want to sell even 200MW to us after July because they want to sell this power outside Mumbai.”
Tata Power rejected the allegations. A spokesperson directed Mint to an advertisement on its website where the allegations are described as “malicious and irresponsible”.
“We have already committed about 300MW through contractual arrangements and the balance 200MW is available to meet the expanding load in Mumbai. Where is the question of profiteering? If profiteering was our objective the capacity wouldn’t have been made available in the above manner,” the ad said.
Tata Power hasn’t decided its course of action, the company spokesperson said.
A Maharashtra government committee on Friday directed Tata Power to continue to supply 360MW to R-Infra till 30 June and thereafter, 200MW from 1 July to March 2011.
The panel was formed after Tata Power said last year it would stop supplies to R-Infra beginning 1 April, citing a May 2009 Supreme Court order that said it cannot be compelled to sell to other distributors at regulated rates. Currently, R-Infra gets 500MW from Tata Power.
In a statement on Monday, Tata Power had said that “prima facie (we) do not accept the order of the government of Maharashtra to supply power to R-Infra, as it would cause great hardship to our consumers”.
joel.r@livemint.com
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First Published: Wed, May 12 2010. 11 33 PM IST