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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Sunday, October 10, 2010

Despite rivalry, Tata, ADAG companies buying power from each other


Tata Power Company (TPC) from the Tata stable and Reliance Infra from the Anil Dhirubhai Ambani Group (ADAG) may have been locked in a keen rivalry for market supremacy in power distribution in Mumbai but companies from their folds have no qualms about buying power from the rival groups. Kokilaben Ambani Hospital , a prestigious Anil Ambani group institution was weaned away from RInfra by Tata Power which charges much lesser rate compared to RInfra. While many Tata group companies located in Mumbai suburbs have been drawing power from RInfra. "The Kokilaben hospital shifted to TPC last year after RInfra increased its tariff," a RInfra spokesperson said today. 
"The reason for the shift was merely the higher tariff charged by RInfra. This is because we have to procure costlier power from outside as TPC has not signed a PPA with us despite several requests," the spokesperson said. While TPC supplied power at Rs 5.25 per unit to the hospital, RInfra charged Rs 8.41 per unit (last year's rates at the time of the shift). RInfra officials said that several Tata Group companies are supplied power from RInfra's distribution network. 
"The Tata Group has several offices of its companies, including TCS, Tata Capital, 
Tata Motors , Tata Indicom, Tata Sons, Tata Teleservices and Tata Chemicals , in suburban Mumbai which have chosen to be with RInfra and not shift to TPC," the RInfra spokesperson said. 
Apart from the ADAG hospital, nearly 45,000 other RInfra consumers have shifted to TPC after the Maharashtra Electricity Regulatory Commission (MERC) allowed consumers to shift from one power supplier to another. Consumers shifting from RInfra to Tata Power were mainly influenced by the cheaper power offered by the latter. A spokesperson for TPC claimed that several more RInfra consumers were on the verge of shifting to its services. "Nearly 1,000 families in the suburban Bandra-Khar belt, who were RInfra consumers, have opted to switch over to TPC," the TPC spokesperson said.

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