SC approves power purchase agreements signed by Tata Power

MUMBAI: The Supreme Court on Wednesday approved the power purchase agreements signed by Tata Power with the Brihanmumbai Electricity Supply and Transport and its distribution arm, setting aside a petition filed by Reliance Infrastructure. The agreements had earlier been approved by the Maharashtra Electricity Regulatory Commission and R-Infra had challenged them.

With this approval a long-drawn out litigation between Tata Power and R-Infra over power allocation comes to an end. Tata Power has signed a PPA with BEST for 800 MW and another with its distribution arm for 477 MW. R-Infra is yet to sign a power purchase agreement with Tata Power for 500 MW.

The apex court held that "section 23 of the Electricity Act of 2003 does not give any jurisdiction to MERC to allocate any power to a non-contracting discom, " said Tata Power in a statement.

Shares of Tata Power and R-Infra gained 1% to close at Rs 912.65 and Rs 801.45 respectively on BSE amid a choppy session on the BSE.