MERC approves 700 MW PPA between distribution and generation business of Tata Power for 5 years

Maharashtra Electricity Regulatory Commission (MERC) has allowed the Distribution Business of Tata Power, India's largest integrated power utility to have a Power Purchase Arrangement (PPA) with its generation arm for 700 MW to be supplied from its Trombay Thermal and Hydro plants for a period of five years from 1 April 2019 to 31 March 2024.

After the due diligence for ensuring the reliability of supply and cost competitiveness for the Tata consumers in Mumbai, the Hon'ble Commission, in its order on 26 March 2019, approved the arrangement.

Earlier in the month of January, 2019, the Hon'ble Commission has approved, the Power Purchase Agreement (PPA) of Tata Power with BEST for 677 MW.

The process of power tie-up was undertaken by the Distribution Business for its consumers for the period of five years starting 1 April 2019. The existing power tie-up was scheduled to expire on 31 March 2019.

This will ensure cheaper power to Mumbai consumers with the added advantage of inexpensive hydro peaking power. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations.

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