R-Infra, TPC war of words intensifies

Anil Ambani Group company Reliance Infra on Friday unleashed a public campaign accusing Tata Power of planning to make a profit of Rs 1200 crores at the cost of Mumbaikars ,an allegation termed by tata power "malicious" and against the "ethos of competition and consumer interest".

The two companies have been locked in a bitter row for over two-years over power supply. Tata Power used to sell 500MW to R-Infa but threatened to stop doing so, with Reliance Infra refusing to sign a power purchase agreement (PPA). R-Infra supplies power to Mumbai's suburbs. Unleashing its public campaign, Reliance Infra distributed a booklet, which said that Tata Power is planning to make Rs 1,200 crore at the cost of Mumbai consumers by diverting the electricity produced for Mumbai to outside the metropolis.

In a strongly-worded statement, Tata Power said the campaign "...is essentially a diversionary tactic to divert the attention of Mumbai consumers from the persistent failures of R-Infra to manage its costs, including power procurement costs, as a result of which Mumbai consumers are faced with unprecedented tariff burden not seen anywhere else in the country."

The statement further said the "...booklet is an attempt to disturb the freedom of choice available to the consumers; thereby restricting the switchover from R-Infra to Tata Power that is in process in suburban Mumbai and is gaining momentum with each passing day." In another statement R-Infra claimed that the company has witnessed an "increase in demand" this summer due to "continuously increasing consumer base".

"The company has seen its consumer base increasing by 1.15 lakh new consumers over last year as against the migration of 45,000 consumers to another utility; thus net addition 70,000 consumers," an R-Infra statement said. "This year, during summer the company recorded a maximum demand (Peak Load) of 1,449MW against the 1,410MW last year, an increase of almost 3 per cent; where as the minimum demand (Base Load) has gone up from 790MW to 848MW, an increase of almost 6 per cent," it added.

Tata Power had earlier said it would stop supply to R-Infra and is considering all options, including legal, in the face of a state government directive to continue supplying 360 Mw power to R-Infra till June 30.