Reliance Infrastructure to acquire additional 850 MW

A top official said that Reliance Infrastructure will acquire an additional 850 MW of electricity from the market to ensure there is no power shortage in Mumbai.

Mr Lalit Jalan CEO of Reliance Infrastructure said that "Mumbai is in shortage of around 650 MW of electricity. We will buy this shortfall from the market at regulated rates to keep our consumers from facing power cuts."

Mr Lalit added that "If we stop getting the approx 200 MW power supply from TATA Power Company, we will acquire that 200 MW from the market." He also mentioned that as per the Electricity Act the power purchase cost is a pass through.

Mr Lalit also added that "In this case If TATA Power refused to provide us with the 200 MW we will have to buy this power at the next best available price and then that cost of power will be passed on to my consumers."

Mr Jalan also mentioned that if RInfra's network is to be replicated it will cost around INR 15,000 crore. He said that "We do not make money on the power purchase cost. So consumers will pay the additional money."
(Sourced from ET)

Source : Steel Guru : Reliance Infrastructure to acquire additional 850 MW