HC denies interim relief to Tata Power

The Bombay High Court today refused to grant any interim relief to Tata Power Company (TPC), which challenged the Maharashtra government’s memorandum and the state committee’s recommendation to maintain status quo, by supplying 360 Mw power to Reliance Infrastructure (R-Infra), through a writ petition.

The high court refused to set aside the government memorandum and the committee report of May 7, after the state government made it clear that it had not issued any order according to the provisions of Electricity Act, 2003. But the government said it had advised TPC to continue to supply 360 Mw to R-Infra at the regulated rate of Rs 3.70-4.40 till June and 200 Mw from July to March next year at the regulated rate.

The government argued that the Electricity Act, 2003 had delegated powers to states to issue orders in exceptional circumstances, but it had not exercised its rights. The government also argued that it had not given any directive to the state load despatch centre (SLDC) regarding the wheeling of 360 Mw, but advised it to maintain status quo, especially when the matter was referred to the Maharashtra Electricity Regulatory Commission (MERC).

TPC said, “We are happy to note that the stand taken by the state government as above reiterates Tata Power’s right to schedule 360 Mw at its discretion. Tata Power is going ahead and advising state load despatch centre (SLDC) to schedule 160 Mw to its own consumers and will offer to supply 200 Mw to R-Infra till June 30 at the regulated rate as offered to the government in May.”

R-Infra said, “TPC pleaded to set aside the memorandum issued in public interest by the state government; however Hon'ble High Court has rightly rejected TPC’s plea. We are committed to protect legitimate rights of our consumers and would continue to do so.”MERC has convened a hearing on June 28 regarding this. MERC has restricted the hearing only on the state government’s memorandum of May 7.