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Bombay HC allows Tata to choose whom to supply power

Bombay HC allows Tata to choose whom to supply power
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First Published: Fri, Jun 11 2010. 09 49 PM IST
Updated: Fri, Jun 11 2010. 09 49 PM IST
Mumbai: The Bombay High Court on Friday said there was no need to rule on a petition by Tata Power Co Ltd (TPC) to set aside a Maharashtra government order asking it to continue supplying power to rival Reliance Infrastructure Ltd, or R-Infra, after the government clarified in court that its order was only ‘advice’ to the company.
The latest order effectively allows Tata to take a call on whether it wants to supply power to R-Infra.
Tata Power welcomed the change of stance by the Maharashtra government and said that it will now approach the State Load Dispatch Centre (SLDC) to divert 160 megawatts of power to its own distribution company.
“We will offer to supply 200 MW capacity to R-Infra till 30th June 2010 at regulated rates as offered to the government in May 2010,” the company said in a release. However, it did not say what it will do with the 200 MW after June.
Tata Power said earlier it cannot continue supplies to R-Infra as it has signed a power purchase deal for 100MW with the Brihanmumbai Electric Supply and Transport Undertaking and for 160MW with its own distribution firm.
Interestingly, R-Infra also welcomed the order because the high court rejected Tata’s plea.
“TPC pleaded to set aside memorandum issued in public interest by the GoM (government of Maharashtra); however Hon’ble High Court has rightly rejected TPC’s plea. We are committed to protect legitimate rights of our consumers and would continue to do so,” R-Infra said in a release.
This is the latest episode in the year-long battle between the two companies. Last month, Tata had approached the court after the state government directed it to continue supplying 360MW to R-Infra at regulated rates.
joel.r@livemint.com
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First Published: Fri, Jun 11 2010. 09 49 PM IST