Reliance Infrastructure, a distribution licensee of Mumbai suburbs, today accused the Maharashtra government of showing leniency towards power generator Tata Power Company.
"The state government is showing leniency towards the power generator Tata Power Company at the cost of Mumbai suburban consumers," Reliance Infra's CEO Lalit Jalan told reporters here.
The cabinet sub-committee has allowed Tata Power to sell 200 Mw to any other player after March 31 and thus allowed it to make super normal profit at the cost of the Mumbai consumers, Jalan said, adding "with this decision, the Mumbai suburban consumers either have to pay higher tariffs or face power cuts."
Tata Power continues to sell 100 Mw power outside Mumbai and currently makes a profit of Rs 300 crore out of this and plans to increase it up to Rs 1,000 crore, without having any provision to allocate power for suburban Mumbai consumers, Jalan said.
In addition, Reliance Infra said it had offered to hand over its 5 lakh consumers in suburban Mumbai to Tata Power.