No automatic Mumbai licence extension for R-Infra

The application of Anil Ambani Group company Reliance Infrastructure (R-Infra) for an extension in its existing power distribution licence to the suburbs of this metropolis has been rejected. It has, instead, been told to join the competitive process for a new one, with four other bidders.

The licence is to expire on August 15 and the company had applied to the Maharashtra Electricity Regulatory Commission (MERC).

R-Infra supplies to 2.7 million consumers in the suburbs.

R-Infra had approached MERC last November, to amend the expiry date; it wanted a 25-year extension. The erstwhile BSES had received the government licence in 1926 for a period of 50 years. Then, in 1976, the state government amended the licence by giving a 10-year extension and thereafter for another 25 years, ending August 15, 2011. MERC has invited applications of Expression of Interest for power distribution in the Mumbai suburbs. Four bidders — India Bulls, MahaVitaran, Torrent and Lanco — have applied. In view of MERC’s order, R-Infra has been asked to file a fresh application, too, for a distribution licence.

MERC chairman V P Raja told Business Standard: “R-Infra will now have to endergo the public consultation process to get extension for the distribution license. This process will also be applicable to India Bulls, MahaVitaran, Torrent and Lanco.”

An R-Infra spokesman said: “While expressing its views on certain statutory provisions on the issue of granting renewal or extension for distribution license, MERC has advised R-Infra to undergo the process of application for distribution licence as mentioned in the Electricity Act. R-Infra shall initiate appropriate steps.”