Tata Power rallies as MERC grants 25-year power distribution licence

NEW DELHI: Tata Power Ltd rallied as much as 4.2 per cent in trade on Monday after the state electricity regulator Maharashtra Electricity Regulatory Commission (MERC) has granted 25 years distribution licence to Tata Power for supplying power in city and suburban areas.

At 09:36 a.m.; Tata Power pared some of the morning gains and was trading 2.4 per cent higher at Rs 92.90 and was also the top Sensex gainer. It hit a low of Rs 91.90 and a high of Rs 94.60 in trade today.

MERC in its order has allowed Tata Power Company (TPC) to supply electricity in Mumbai city, parts of suburban areas including Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs for 25 years.

Tata Power has a consumer base of five lakh in Mumbai of which nearly 65 per cent are those consuming below 300 units per month, PTI reported.

It has also been granted licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.

"Based on all materials placed, and suggestions and objections received, the Commission is of the view that it is in the public interest to grant licence to TPC to distribute electricity in the proposed area of supply," MERC said in the order.