MERC extends Tata Power’s PPA for another five years

30 Nov 2023 , 12:54 PM

The Maharashtra Energy Commission (MERC) asked Tata Power, which distributes electricity in Mumbai, to renew its power purchase agreement (PPA) with the company’s generating units for another five years.

The ruling by MERC chairperson Sanjay Kumar and members Surendra Biyani and Anand Limaye effectively allows the company to continue generating power from its suburban Trombay plants.

The company runs three 500 MW, 250 MW, and 180 MW units at Trombay, the largest of which is coal-fired and also the oldest. The power generated by the units is distributed across the financial capital.

‘In light of the current transmission constraints, the Commission directs TPC-D to extend the existing PPA with TPC-G by 5 years, i.e. until March 2029,’ according to an order posted on the website.

The company added that the extension of the said PPA shall be signed unit wise.

The Maharashtra State Power Committee was also instructed by MERC to give a full report on cost sharing under the Mumbai Transmission constraint by December 31, current year.

At around 12.29 PM, Tata Power was trading 2.49% lower at Rs 266.60, against the previous close of Rs 273.40 on NSE. 

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