BSES blames TEC for stalling Saphale project

MUMBAI, NOV. 13. The power utility BSES today accused Tata Electric Companies (TEC) of opposing its proposed Rs. 1,500 crore power project at Saphale in Palghar.

``Even now, when Mumbai is reeling under power shortage, I fail to understand why TEC is opposed to Saphale,'' the BSES Chairman and Managing Director, Mr. R. V. Shahi, told reporters here today.

``We have never opposed TEC's move for capacity addition, then why should they do so for us?'' Mr. Shahi asked.

He said, let there be capacity addition, neither us nor TEC have to face any kind of hassles of power purchase agreement, escrow accounts or any harassment from the State Government.

``Mumbai is a growing city, in fact we must go on adding capacity to create a high cushion in the system,'' Mr. Shahi said adding, ``as a power sector professional, I can say, absence of creating capacity addition is costing the metropolis.''

As per the Maharashtra Government's order, BSES' Saphale would be set up in two phases, Mr. Shahi said adding it was awaiting environmental and several other clearances from the State as well as the Centre.

BSES has already signed a memorandum of understanding with Oil and Natural Gas Corporation for sourcing some volume of gas from the Mumbai High offshore region, he added.

Over the recent controversy of payment of Rs. 363 crore standby charges by BSES to TEC, Mr. Shahi contended that there were no separate charges to be paid but an integral part of the tariff comprising energy charge, demand charge, demand charge for standby supply, additional energy charge and fuel adjustment charge.

Alleging that TEC was already charging BSES `more than required,' Mr. Shahi said, the actual cost of power should not be more than Rs. 2.50, while the Tatas were charging Rs. 3.70 from the company.

He welcomed the State Government's decision to refer the matter to the State Electricity Regulatory Commission (MERC) and said BSES would honour the authority's judgment.

``A transparent investigation by MERC on how a stand-by charge was an integral part of the tarrif will solve the matter,'' Mr. Shahi added.

- PTI

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