The Maharashtra Electricity Regulatory Commission has allowed Brihanmumbai Electric Supply and Transport Undertaking to extend its existing 676.69 MW power purchase agreement with Tata Power for another 5 years.
"Maharashtra Electricity Regulatory Commission (MERC) has allowed Brihanmumbai Electric Supply and Transport Undertaking (BEST) to extend its existing Power Purchase Agreement (PPA) with The Tata Power Company Ltd (TPC-G) for 677 MW supplied from its Trombay Thermal and Hydro plants for five years from April 1, 2019 to March 31, 2024," a Tata Power statement said Wednesday.
According to the statement, after the due diligence for ensuring the reliability of supply and cost competitiveness for the BEST consumers in Mumbai, the commission, in its order on January 2, 2019, approved the extension.
The commission's order came after BEST inter alia submitted that the cheapest option before it is the extension of its present PPA with Trombay Thermal Power Station and Hydro plants of Tata Power. The BEST and Tata Power have agreed for an extension of PPA with existing terms and conditions.
"Tata Power is committed to supplying the most reliable and competitive power meeting the needs of BEST consumers, as always," said Praveer Sinha, CEO & Managing Director, Tata Power said.
The process of power tie-up was undertaken by the BEST in 2017-18 for its discom consumers for the period of next five years starting 1st April 2019. The existing power tie-up of 677 MW between BEST & Tata Power is scheduled to expire on March 31, 2019.
This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations in view of the transmission constraints, it added.