Friday, May 21, 2010

TATA Power softens stand on power battle

It is reported that TATA Power offered to supply 200 MW to Reliance Infrastructure at the regulated rate of INR 3.70 to INR 4.40 per unit till June 30. The company had so far stuck to its stand that it would charge INR 5.90 per unit for supplying the 200 MW.

TATA Power also suggested to the state government that from July 1 it can supply 200 MW by taking over 400,000 consumers of RInfra with monthly consumption of less than 100 units. These consumers would pay TATA Power’s applicable rate of INR 1.30 per unit.

As per the reports TATA Power’s proposal came at a time when the State Load Despatch Centre turned down its request to schedule 160 MW out of the current 360 MW to TATA Power Distribution Company from Sunday midnight onwards to cater to its consumers. So TATA Power’s supply of 360 MW to RInfra at the regulated rate continues.

TATA Power said that “We are disappointed to note that we have to maintain status quo on 360 Mw power supply to RInfra. The decision continues to ignore the needs of our consumers who have switched over from RInfra. It is preferential to one set of Mumbai consumers against the other and supporting an inefficient distributor.”

A spokesperson at RInfra said it would study the implementation aspects of the TATA Power proposal.

Mr S Ramakrishnan and S Padmanabhan executive directors at TATA Power said that the company proposed to give the wheeling charge of 37 paise to RInfra. The offer would be applicable till March 31 and is subject to the approval of Maharashtra Electricity Regulatory
Mr Ramakrishnan said TATA Power’s proposal would reduce R Infra’s power purchase requirement by 200 Mw. This would also reduce RInfra’s requirement for cross-subsidy.

Mr Ramakrishnan added that “Mumbai consumers are protected during the summer. R-Infra secures three more months to procure power for its consumers on a long term basis.”
(Sourced from BS)
Source : Steel Guru : TATA Power softens stand on power battle

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