Tata Power Wednesday said the Maharashtra Electricity Regulatory Commission (MERC) has approved 700 MW power purchase agreement between the company's distribution and generation business arms for the next five years.
MERC has allowed the distribution business of Tata Power to have a power purchase agreement (PPA) with its generation arm for 700 MW to be supplied from its Trombay thermal and hydro plants for a period of five years from April 1, 2019 to March 31, 2024, a company statement said.
After the due diligence for ensuring the reliability of supply and cost competitiveness for Tata consumers in Mumbai, the Commission, in its order on Tuesday, approved the arrangement, it said.
"Tata Power has been serving the city of Mumbai for over a century and continues to be committed to supplying the most reliable and competitive power meeting the needs of their consumers," Tata Power CEO and Managing Director Praveer Sinha said in the statement.
The process of power tie-up was undertaken by the distribution business for its consumers for a period of five years starting April 1, 2019. The existing power tie-up was scheduled to expire on March 31, 2019.
This will ensure cheaper power to Mumbai consumers with the added advantage of inexpensive hydro peaking power. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations, it added.
Earlier in January, the Commission had approved the PPA of Tata Power with BEST for 677 MW, the statement said.
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