Reliance Infrastructure (R-Infra) has hinted at declining permission to its business rival Tata Power to use its transmission network to supply electricity in sub-urban Mumbai.
Currently, Tata Power, which has over 8,00,000 customers in the metropolis, uses the Anil Ambani-led firm's 400 sq km long transmission network to supply electricity in the area where R-Infra also has a distribution licence. R-Infra at present serves 2.8 million customers in its licenced area.
In a recent judgement, Maharashtra power regulator MERC granted distribution and transmission licences to R-Infra, which were expiring on August 15, for a period of 25 years.
"The licence were granted after the MERC was satisfied that we had the necessary transmission network and power purchase plan in place.
Otherwise, as per the law, each distribution licensee has to supply electricity through its own network, which would not have been feasible in the current scenario," R-Infra Whole-time Director and Chief Executive Officer (CEO) Lalit Jalan said.
The MERC had rejected the proposals of other four bidders, Lanco Infrastructure, Torrent Power, Indiabulls and MSEDCL, the state-run energy distribution utility.
Asked whether R-Infra would decline permission to Tata Power to use its network, he said, "I can do it even today. I may decide not to grant permission to Tata to use my network. But we want a healthy and competitive environment. My customers are free to shift to Tata, but I am confident that they will all come back within six months."