MERC might re-draw boundaries of Reliance Infra's licensed area

MUMBAI: Taking into consideration the increasing demand for power in the metropolis and the expiry of RInfra's license to supply electricity in the city's suburbs in 2011, MERC has given indications that it could consider re-drawing of boundaries of the area where the Anil Ambani-led company distributes power.

The Maharashtra Electricity Regulatory Commission (MERC) had invited Expressions of Interest (EoIs) from companies to distribute power in the license area of RInfra, since the latter's license expires on August 15, 2011.

Currently, the generation capacity of RInfra is 500 MW while Tata Power Company generates about 1,900 MW. The peak hour demand for power in Mumbai is over 3,100 MW, while the supply is around 2,400 MW.

"In the given situation, there is a need to find out novel solutions. This is the first time in India that a large utility's license is due to expire. Therefore, MERC will have to tread very carefully while deciding the methodology," MERC Chairman, V P Raja, said here today during a meeting with eight companies, which had submitted their EoIs.

He said that the issue of re-drawing of boundaries could come up while considering the applications for the next distribution licensee for Mumbai's suburbs.

Meanwhile, RInfra, which supplies power to 27.24-lakh consumers (around 85 per cent residential), has filed a petition seeking renewal of its existing license.

Raja, however, said that MERC "has an open mind" about the whole matter.

The eight bidders who submitted their EoIs are MSEDCL, Torrent Power, DPSC Ltd (Kolkata), Lanco Infrastructure, GMR Energy, Indiabulls Power Ltd, TPC and Enzen Global Solutions (Bangalore).