CM pledge amid power dispute: no cuts or hike

“At the moment,we do not expect any power tariff hike or load shedding in the suburbs. The state government is in talks with both companies. There won’t be an effect on Mumbaikars. If need be,MSEDCL will step in,” Chavan said.

TPC stressed its inability to adhere to the government’s supply formula. In a statement,it said: “Government of Maharashtra has written a letter to us referring certain matters to MERC and advising us to adhere to the following arrangement – 100 MW to BEST; 360 MW to R-Infra till 30th June,and 160 MW to Tata Power-D and 200 MW to R-Infra thereafter till 31st March 2011.

“Over the last several months,many customers have shifted from Rinfra to us and it is necessary that we honour the power purchase agreement (PPA) of 160 MW supply to Tata Power-D to service our customers. We are happy that we have been allowed to honour the (PPA) with BEST for 100 MW. With regards to the balance power,we are willing to supply 200 MW to RInfra till 30th June 2010. This 500 MW is as always available for Mumbai and hence load shedding need not be there.”

A TPC spokesperson said they are willing to supply the 200 MW at Rs 5.90 per unit rather than the regulated rate of Rs 4.40 per unit. The spokesperson said R-Infra does not have a PPA with TPC and there is no legal binding to supply at the regulated rate.

“Tata Power’s offer of Rs 5.90 per unit to RInfra for suburban consumers vindicates our stand that they want to profiteer at the expense of Mumbai consumers,” said a R-Infra spokesperson.

TATA vs RELIANCE
Govt stand: Tata Power Company should supply Reliance Infrastructure 360 MW till June 30,and then 200 MW till March 31

Tata stand: Will supply 200 MW,charge at rate higher than regulated one

Reliance stand: Company accuses TPC of profiteering