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CEA report favours REL, says Tata Power

Our Bureau

Mumbai , June 16

TATA Power Company has alleged that the Central Electricity Authority report, based on which the Maharashtra Electricity Regulatory Commission (MERC) rejected its claim that Reliance Energy Ltd (REL) should equally share standby charges with it, was biased in REL's favour.

TPC on Tuesday filed an affidavit at the Mumbai High Court accusing both REL and the CEA of "wilfully suppressing" information that the latter is working for Reliance as consultant for a fee of Rs 55 lakh for setting up an FGD plant at Dahanu, where its 500 MW power station is located.

The affidavit said this is proof that the CEA report submitted to MERC is not independent. Reliance has paid for joint visits by the CEA and REL officials to the UK and Germany in connection with installation of the Flue Gas Desulphurisation plant, it said.

"The CEA is still providing services to REL... and is charging fees, therefore... it could not have advised MERC on the disputes between Tata Power and REL... The CEA and REL ought to have disclosed the said fact to Tata Power and MERC," the affidavit said.

Tata Power said it received this information from the Environmental Association of Dahanu along with copies of documents filed by REL before the Dahanu Taluka Environmental Protection Authority.

The affidavit contains excerpts from documents received from the Environment Association.

The MERC had ordered TPC to refund Rs 322 crore to REL for the excess payment of standby charges during 1998-99 and 2003-04. It had asked TPC and REL to bear charges payable to the MSEB for providing standby power to Mumbai on a 77:23 per cent basis.

When contacted, REL said it would make an appropriate submission to the Mumbai High Court in response to Tata Power's writ petition against the MERC order.

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