Tata Power moves court against government

Tata Power Company (TPC) on Wednesday filed a writ petition in the Bombay high court challenging the state government’s suggestion to supply 360MW of electricity to RInfra till June end and the refusal of the Maharashtra State Load Dispatch Centre (MSLDC) to re-schedule 160MW of 360MW from May 16. 

According to TPC, the government cannot direct the generating company to sell power to any particular licensee as this would amount to regulation of generation activity. Also, such a direction would bring back through the back door the licence raj in regard to electricity generation, which was unshackled by the Electricity Act. 

The petition says that the government has erred in threatening to invoke section 11 of the Act to direct TPC to give power to a particular distribution company. “This section can be invoked only if there is a threat to security of the state or public order. This is no such occasion as the dispute with RInfra relates to high consumer tariff,” said the petition. 

“We had told RInfra and Maharashtra Electricity Regulatory Commission (MERC) from 2008 that we would need this power for new consumers who change over from RInfra. Section 10 gives the generating company the right to enter into a contract to supply electricity to any person of its choice,” it added. Meanwhile, the government has told MSLDC to maintain status quo regarding the 360MW power until MERC gives any direction on the matter. 

RInfra has said that it has given documentary evidence to the government that TPC thwarted its plans to set up generation plants and wanted to sell power to earn extra profits.