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Tata Power to invest Rs 1,000 cr to lay cables in Mumbai

Tata Power to invest Rs 1,000 cr to lay cables in Mumbai
PTI
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First Published: Thu, Aug 25 2011. 02 09 PM IST
Updated: Thu, Aug 25 2011. 02 09 PM IST
Mumbai: The country’s largest private power generation company Tata Power plans to invest around Rs 1,000 crore over the next three years for laying its own cable network in the metropolis for distributing power, a senior company official has said here.
“We will be investing around Rs 1,000 crore over the next three years to lay our own distribution network in Mumbai for supplying power to our customers,” Tata Power Company (TPC) executive director Sankaranarayanan Padmanabhan told reporters on Wednesday after the company’s annual general meeting.
At present, TPC serves 8 lakh customers using the wire network of BEST and Reliance Infrastructure to distribute electricity in the city and the suburbs, respectively. TPC also has its own network in certain parts of the metropolis.
TPC is charged a fee, called wheeling charges for using distributing power through the Reliance Infrastructure and BEST network, which the company then recovers from its consumers.
“Law allows wheeling and permits us to use the network of Reliance to distribute electricity in the suburbs. Before the Supreme Court (SC) order, we were not allowed to lay parallel network. But now we have rolled out a plan to lay our own network. We have put up a proposal to the Maharasthra Electricity Regulatory Commission (MERC),” he said.
In 2008, the SC had allowed TPC to supply electricity to retail consumers having a requirement of 1,000kv or less, in Mumbai.
Meanwhile, in a recent order of the state electricity regulator, the regulator MERC had granted Reliance Infrastructure licence to distribute electricity in the suburbs for 25 years as the company’s license was expiring on 15 August.
The MERC had rejected the proposals of four other bidders, including Torrent Power, Lanco Infrastructure, Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Indiabulls, saying they did not have their own networks in place and in “public interest” it granted Reliance Infrastructure the license.
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First Published: Thu, Aug 25 2011. 02 09 PM IST