Scrap REL licence in Mumbai suburbs, Rane tells CM

In a bid to outdo the Shiv Sena that carried out an agitation against Anil Ambani-promoted Reliance Energy Ltd (REL) earlier this week for alleged inflated bills sent by the company to consumers in suburban Mumbai, state Industry Minister Narayan Rane has asked Chief Minister Ashok Chavan to get the distribution licence of REL revoked.

On June 8, Sena activists had agitated at REL’s headquarters at Santacruz protesting hike in electricity charges by the company, which distributes power to 2.6 million consumers in suburban Mumbai.

In his letter to the chief minister, Rane has claimed that “consumers who till two years ago were getting average monthly bills of Rs 400 to Rs 500 per month, suddenly started getting average monthly bills of Rs 1,400 to Rs 1,500 last year, and this year it has increased further to Rs 2,400”.

He also said that the company’s interaction with consumers is insensitive and this is hurting the state government’s image. Therefore, the state government should recommend to the Maharashtra Electricity Regulatory Commission (MERC) to cancel REL’s distribution licence for Mumbai suburban area.

Chavan, however, was not available to comment on Rane’s letter and explain what step the state government was going to take.