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Tata Power to stop supply to R-Infra after March

Tata Power to stop supply to R-Infra after March
PTI
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First Published: Thu, Jun 25 2009. 10 35 PM IST

Snapping ties: A file pic of Tata Power plant in Mumbai. The firm supplies electricity of up to 500MW to R-Infra without a PPA. Santosh Verma / Bloomberg
Snapping ties: A file pic of Tata Power plant in Mumbai. The firm supplies electricity of up to 500MW to R-Infra without a PPA. Santosh Verma / Bloomberg
Updated: Thu, Jun 25 2009. 10 35 PM IST
Mumbai: Reliance Infrastructure Ltd (R-Infra), under flak after it recently hiked electricity charges, received a setback on Thursday with Tata Power Co. Ltd deciding to stop supply of 500MW of power to it beyond 31 March.
Tata Power said that it was stopping power supply after March as Reliance Infra has not entered into any power purchase agreement (PPA) with it. Currently, Tata Power supplies electricity of up to 500MW to Reliance Infra without a PPA.
Snapping ties: A file pic of Tata Power plant in Mumbai. The firm supplies electricity of up to 500MW to R-Infra without a PPA. Santosh Verma / Bloomberg
Tata Power has asked Reliance Infra to make alternative arrangements for power beyond 31 March, a company official said.
The company is continuing to supply power to the Anil Ambani-controlled company so that no inconvenience is caused to the citizens of Mumbai, the official said.
Tata Power has traditionally been supplying power to the erstwhile Brihanmumbai Suburban Electric Supply, now run by Reliance Infra.
Tata Power was under no obligation to supply power to any entity without a PPA, its official added.
Under the Electricity Act of 2003, it is mandatory for a distribution licensee to sign a PPA with a generation company so that the interests of consumers are protected, the official said.
The official claimed that Tata Power’s stand was upheld by the Supreme Court on 6 May and said that Reliance Infra had no legal right to insist on getting supply of electricity from Tata Power.
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First Published: Thu, Jun 25 2009. 10 35 PM IST