Tata Power drags Maha govt to High Court

The largest private power utility Tata Power, which is in an intense battle with R-Infra, today moved the Bombay High Court seeking to set aside a state order directing it to supply 360 Mw to the Anil Ambani-owned discom till June 30 at a cheaper rate of Rs 3.70 a unit.

The petition also seeks a stay on the state's direction issued on May 7 in the interim period. A vacation bench of the High Court is expected to hear the case on May 24.

The petition says the state "directing the MERC to take steps in relation to Tata Power's obligation to supply power to the distribution licensees of Mumbai is patently illegal".

It also says, "the MERC is not empowered to carry out any regulation on generation activity for any capacity that has not been contracted towards distribution licencee. The MERC cannot foist a contract between Tata Power and R-Infra."

Tata Group company petition also says that it is being "illegally forced to dishonour the contractual obligation with its distribution arm (Tata Power Trading Company)."

When contacted, R-Infra told PTI that it has not been served a copy of Tata petition and "therefore is unable to comment specifically on the same".

"We have submitted all documentary evidences to the government which shows that Tata Power thwarted all attempts of R-Infra to set up generation plants, even committing in courts to take care of our needs till 2014," R-Infra said.

The petition also questions the state's move to use the section 11 of the Electricity Act of 2003, which it says "is a power that is given to the appropriate government to specify that a generating company shall in extraordinary circumstances operate and maintain any generating station in accordance with the direction of that government".

"Extraordinary circumstances as used in section 11 to mean 'circumstances arising out of threat to security of the state, public order or a natural calamity or such other circumstance arising in the public interest," which is not relevant in the present situation, the petition said.

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 it to continue supplying 360 Mw power to R-Infra till June 30.

On May 13, TPC rejected the state order to supply 360mw power to R-Infra till and had asked the state load dispatch centre to divert 160mw to the distribution arm of TPC from May 16 midnight. But dispatch centre told Tata on May 15 that it "will maintain status-quo and await instructions in writing from MERC before taking any action." Following this on May 17, Tata offered to supply 200 Mw to at Rs 3.70 a unit.

Both Tata and R-Infra are locked in a bitter row for over two-years over supply of power with Tata maintaining that it was not obliged to supply power to R-Infra sans a PPA. Last June the Supreme Court ruled that Tata Power has the legal right to operate as a retail distributor.