Maharashtra Electricity Regulatory Commission (MERC) has allowed the distribution business of Tata Power 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 five years from April 1 to March 31, 2024.
After due diligence for ensuring the reliability of supply and cost competitiveness for Tata consumers in Mumbai, the Commission, in its order on Tuesday, approved the arrangement, a Tata Power statement said.
“Tata Power has been serving Mumbai for over a century and continues to be committed to supplying the most reliable and competitive power, meeting the needs of consumers” Praveer Sinha, CEO and Managing Director, Tata Power, said.
In January, MERC approved the PPA of Tata Power with BEST for 677 MW. The existing power tie-up was scheduled to expire on March 31.
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 the embedded Tata Power thermal and hydro generating stations, the statement said.
