Reliance Infrastructure’s spokesperson asserted that the agreement would help settle the long standing litigation over capacity allotment between both firms.
Tata Power said “The matter is subjudice. Reliance Energy has agreed to sign a 500 MW PPA now, which will be executed once agreement is reached on the terms and conditions of PPA.”
Both the firms consented following several consumer organizations discussed before the Maharashtra Electricity Regulatory Commission (MERC) for implementation of PPA.
Reliance Infrastructure, which supplies power to Mumbai’s suburbs, previously obtained 762 MW from Tata Power. However, it was started receiving only 500 MW following island city’s power distribution utility firm, the Brihanmumbai Electricity Supply and Transport (BEST), entered into an agreement with Tata Power for 800 MW.
