State tells Tata firm to supply power to R-Infra

State tells Tata firm to supply power to R-Infra

Mumbai: A Maharashtra government appointed panel on Monday directed Tata Power Co. Ltd to continue supplying power to the Anil Dhirubhai Ambani Group-owned Reliance Infrastructure Ltd (R-Infra) through 30 June at a regulated rate.

“The order asks Tata to sell 360MW of power to Reliance lower than the 500MW it used to sell till March this year," a Maharashtra Electricity Regulatory Commission (Merc) official familiar with the development said on condition of anonymity. “Reliance will have to find the remaining power from the market."

Tata Power confirmed that it had received the order. “We are studying the order and prima facie 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," it said in a statement.

R-Infra said it would be able to comment only after studying the report and that it would endeavour to protect the interests of consumers.

The two firms had been locked in a tussle after Tata Power said last year it would stop electricity supply 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.

The state government panel, comprising principal secretaries from the energy, law and justice departments, the managing director of Maharashtra State Electricity Distribution Co. Ltd, and the secretary of Merc, was formed to mediate in April this year after Tata Power refused to sell power to R-Infra at regulated rates because the latter had not signed a long-term power purchase agreement.