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Mumbai, May 6 The Supreme Court on Wednesday approved the July 2005 power purchase agreement (PPA) between the Brihanmumbai Electric Supply and Transport Undertaking (BEST) and Tata Power Company Ltd.

The agreement was challenged by Reliance Infrastructure Ltd but their contention has been rejected by the court and they have been asked to pay Rs1 lakh, for each of the appeal filed by Tata Power and by BEST in the course of the case.

Reliance Infrastructure had opposed the PPA on the grounds that since it was a consumer of Tata Power it was also eligible to get power on par with BEST.

Currently BEST is getting about 800 MW of power from Tata Power.

Addressing the media after the order was delivered Mr Uttam Khobragade, BEST General Manager, said that it is a landmark order which will enable BEST to give uninterrupted supply to its customers in Mumbai city for next 10 years.

“We have taken a great risk by getting into a 10-year contract with Tata Power. But we chose convenience of Mumbai’s citizens over financial risk” Mr Khobragade said.

Mr Khobragade also said that unfortunately there were efforts from some quarters to prevent BEST from getting 800 MW of power. The Supreme Court not only upheld BEST’s stand but also imposed fine on Reliance Infrastructure for getting into unnecessary litigation and harassing the organisation, he said.

More Stories on : Courts/Legal Issues | Power | Tata Power Co. Ltd

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