In its first public hearing on the proposed sale of Reliance Infrastructure Ltd’s integrated power business to Adani Transmission Ltd in Mumbai, the Maharashtra Electricity Regulatory Commission heard objections and remarks from the general public on Thursday.
Reliance Infra (RInfra) has decided to sell its integrated power operations in Mumbai — generation, transmission and distribution of power in the city and suburbs — to Adani Transmission Limited (ATL).
The deal was sealed at an estimated value of Rs18,800 crore. A definitive binding agreement was signed on December 21, 2017 between the two. The sale is awaiting a nod from the regulatory commission. A petition is pending before the MERC and the first public hearing was held on Thursday.
During the hearing, members of the public brought up issues like tariff and value of assets that were to be retained by RInfra in the deal.
Ashok Pendse, a consumer group representative, said, “Presently, a petition for tariff revision is pending with the commission. If the licence is transferred to Adani, it can’t continue with RInfra’s petition. A new petition must be filed for tariff revision.”
Another representative of a consumer association, said, “No documents have been placed on record on the repercussions (of the deal) on the employees and the consumers.”
He added, “When the BSES was taken over by RInfra, rates had gone up.” People also sought clarity on the future of the employees of RInfra, both permanent and contracted.
Pendse said, “As far as a consumer is concerned, if there is a claim or a counterclaim, it should be with a single licensee,” he said. The MERC has reserved its order.