RInfra to acquire additional 850 MW

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

“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,” said Lalit Jalan, CEO of Reliance Infrastructure.“If we stop getting the approx 200 MW power supply from Tata Power Company, we will acquire that 200 MW from the market,” he added.Jalan mentioned that as per the Electricity Act, the power purchase cost is a pass through.

“In this case, If Tata Power refused to provide us with the 200 MW (that it is already providing), 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,” he said.Jalan also mentioned that if RInfra’s network is to be replicated, it will cost around Rs.15,000 crore.

“We do not make money on the power purchase cost. So, consumers will pay the additional money,” he said.