TPC to ignore MSEB letter

The Tata Power Company (TPC) has decided not to respond to the letter from the state-owned power utility MSEB asking TPC to make alternative arrangements for 500 Mw which TPC is overdrawing from the state grid as a 500 Mw unit of TPC at Trombay has been shut down for annual maintenance.

The letter written by MSEB Holding Company Ltd's Managing Director Subrat Ratho to TPC is nothing but public posturing of the state power utility and it doesn't have any legal sanctity, said informed sources from power sector who wished to remain unidentified.

Sources pointed out that Mumbai consumers pay 40 paise over and above the power tariff, known as standby charges, for uninterrupted power supply and these standby charges are paid by TPC to MSEB under the contract the companies signed over 50 years ago and, terms and conditions of the contract can't be changed overnight and unilaterally.

This is nothing but playing to the gallery as the state is reeling under unprecedented power shortage to the tune of 5,700 Mw and state government is worried about its political impact in forthcoming zilla parishad and panchayat samiti elections, said sources.