Tata Power has come out with an alternative plan to resolve its issue with R Infra.

Tatas make fresh bid to end power supply row - Maharashtra Government instructed SLDC to continue supplying 358 MW to Reliance Infrastructure

A day after the Maharashtra Government instructed the State power load despatch centre to continue supplying 358 MW to Reliance Infrastructure (R Infra), Tata Power has come out with an alternative plan to resolve its issue with R Infra. This comes after the load centre refused to heed to Tata Power's request to discontinue 160 MW to R Infra and divert the same to the Tata distribution company.

Earlier, Tata Power had given R Infra Sunday midnight (May 17) to accept its condition of buying 200 MW at non-regulated rates (Rs 5.90). The company had asked the load centre to discontinue supply to R Infra. Of 458 MW from Tata Power, BEST gets 100 MW and the rest goes to R Infra. The State Government, which tried to reconcile the issue, decided on Sunday to instruct the load centre not to cut supply to R Infra despite instructions from Tata Power.

Last week, the State informed Tata Power that it could divert 160 MW from July 1 and the balance of 198 MW by March 31, 2011 and not cut power to R Infra. Now, Tata Power has suggested that R Infra continue to have 200 MW till June 30, after which it suggested that it would takeover consumers of R Infra who consume less than 100 units each. These consumers can pay the applicable tariff of Tata Power, which is Rs 1.3 per unit as compared to Rs 1.71. Tata Power was also willing to give the wheeling charge of 37 paise to R Infra to address the cross-subsidy requirement.

Mr S. Padmanabhan, Executive-Director (Operations), Tata Power, said that the arrangement would also benefit R Infra as its power need would come down by 200 MW, besides the cross-subsidy burden. This would also provide R Infra three months to procure power on a long term basis for its consumers without depending on Tata Power supply. Tata Power has sent its alternative proposal to the Government. Mr S. Ramakrishnan, Director-Finance, who did not rule out legal options, said the company was exploring all possible ways to solve the issue amicably.