MERC Grants Five-Year Extension for Power Supply from Tata Power Trombay Unit

30 Nov 2023

The Maharashtra Electricity Commission (MERC) issued a directive on November 29, in which Tata Power's subsidiary responsible for power distribution in the financial capital was directed to extend its power purchase agreement (PPA) with the company's generating units for an additional five years.

The order, supported by MERC chairman Sanjay Kumar and members Surendra Biyani and Anand Limaye, effectively opens the way for continued generation of power from Tata Power's units located in suburban Trombay. Tata Power operates three units at Trombay with capacities of 500 MW, 250 MW, and 180 MW. The largest unit, which is coal-based and also the oldest, plays a vital role in supplying electricity to various parts of the financial capital.

The official order posted on the MERC website said: "In view of the existing transmission constraints, the Commission directs TPC-D to extend the existing PPA with TPC-G for five years, i.e., till March 2029." The instructions specify that this extension of the PPA should be signed entity-wise. Further, MERC has directed the Maharashtra State Electricity Board to submit a detailed report on cost-sharing under the Mumbai transmission bottleneck by December 31 of this year.