Mumbai’s electricity distribution companies (DISCOMs) - Tata Power, BEST and Reliance Infrastructure- have approached the Maharashtra Electricity Regulatory Commission (MERC) for the renewal of their Power Purchase Agreements (PPAs). Three PPAs, between BEST-Tata Trombay, Tata Distribution- Tata Trombay and Reliance Distribution – Reliance Dahanu, are expiring.

The companies are seeking renewal on three main grounds: the constraint of importing power (“transmission constraint”), the islanding requirement for Mumbai, and the claimed competitiveness of their tariff.  This article published in the DNA on 6th May 2017 analyses these claims and argues for competitive bidding as a better mechanism for power procurement.