Power purchase agreement between Reliance Infra and Tata Power very much on cards

The prolonged lawsuit between the Anil Ambani-led Reliance Infrastructure (Rel Infra) and Tata Power (TPC) over power allocation has shown some signs of resolution, as the former has agreed to sign a 500 MW power purchase agreement (PPA) with the latter.

Rel Infra used to get 762 MW of power from TPC until Brihanmumbai Electricity Supply and Transport (BEST), signed an agreement with the TPC for 800 MW of power, which left Rel Infra in deficit of 262 MW.

Apart from this, Rel Infra had also filed an appeal against Maharashtra Electricity Regulatory Commission’s (MERC) order that allowed TPC to sell 100 MW of power to Tata Power Trading Company.

TPC has argued that in the absence of any formal PPA with Rel Infra it can sell the power to any other party. The company has increased its capacity to 2,027 MW from 1,777 MW in the last month.