The annual general meeting of Tata Electric Companies (TEC) was marked by an angry attack launched by the outgoing chairman, H N Sethna, on rival BSES Ltd.
Sethna first said that TEC will not raise its tariff despite pressure being brought on the company by others through the government. Later on, he said that the average cost of power being sold by the Tatas to the consumers was Rs 2.55 per unit while that being sold by BSES was Rs 3.65 per unit.
Sethna also pointed out that TEC was, in fact, subsidising BSES by supplying power to it at Rs 1.29 per unit. The total subsidy to BSES amounted to Rs 200 crore, he added.
More From This Section
"Of the total standby charges of Rs 297 crore being paid to the Maharashtra State Electricity Board (MSEB), TEC is paying Rs 255 crore while BSES is paying only Rs 42 crore. We will enter into open competition with them in the Bandra-Kurla area," he added. He accused BSES of using "persuasion" to prevent one party from shifting over to TEC from BSES in the same area. Sethna said that TEC had secured an extremely fine rate for the $300 million yankee bond issue that it had floated last year. TEC had ambitious plans of setting up an LNG terminal at $500 million and constricting its own jetty in Mumbai for which it will require atleast Rs 400 crore.
Meanwhile, TEC's net profit has risen slightly by 4.17 per cent for the first quarter of 1998. The company's net profit rose to Rs 76.34 crore for the three months ended June 30, 1998 from Rs 73.28 crore for the period ended June 30, 1997. he company's sales rose by two per cent to Rs 603.94 crore from Rs 591.54 crore. Other income went up by 15 per cent to Rs 50.56 crore from Rs 43.95 crore. Total expenditure increased by about two per cent to Rs 442.06 crore from Rs 433.46 crore. The company's interest burden increased to Rs 47.59 crore from Rs 43.05 crore. The tax burden increased slightly to Rs 41.11 crore from Rs 40.20 crore. Depreciation charges rose to Rs 47.41 crore from Rs 45.50 crore.