How to create monopoly and make Rs.1200 crores: The Tata Power way  
     
  How the power produced in Mumbai, produced for Mumbai, funded by Mumbai consumers is being diverted outside Mumbai  
     
  Tata Power blocked all efforts for any of the distribution companies of Mumbai to set up their own power generation, thereby creating complete dependency on them.
   
   
 
Year 2001: RInfra proposed to set up 495 MW power plant at Saphale. TPC objected with a writ petition in High Court. See Tata Power’s writ petition.
TPC's writ petition
 
Year 1998: RInfra proposed to set up 495 MW power plant at Palghar. TPC objected claiming that they alone would cater to upto 900 MW power need of RInfra. They succeeded in sabotaging. See the evidence.
TPC's objection letter
     
Year 1986: RInfra proposed the 500MW power plant at Dahanu. TPC objected in writing to the Govt of Maharashtra. Fortunately, for the consumers of suburban Mumbai, Govt didn’t accept their objection. Dahanu today supplies its entire 500MW of precious electricity to Mumbai at the cheapest rates of Rs 2.3/unit. See Tata Power’s objection.
TPC's objection letter to GOM
     
 
 
  Tata Power also blocked RInfra from arranging additional supply of electricity.
   
   
 
Year 2003: RInfra floated a bid to arrange long term power supply to ensure cheap and reliable electricity for its suburban consumers. TPC objected and asked RInfra to withdraw the bid. Their contention – only TPC has the sole right to supply power to RInfra! See Tata Power’s letter
TPC's letter to RInfra(erstwhile BSES)
 
   
On one hand they made sure that Mumbai consumer remained totally dependent on them and on the other hand for 15 long years, between 1993 and 2008, Tata Power did not add even a single MW to its power generation. And when they eventually did, they took all critical government approvals on the pretext that the power was meant for Mumbai.
 
 
  Year 2006: Tata Power took all Government approvals for its power plants on the pretext that the power was meant for Mumbai.
   
 
Tata Power’s Project Report submitted to MERC clearly states this.See the evidence.
TPC's Project report
 
The report submitted by Committee of Secretaries mentions that Tata Power set up its power plants for Mumbai with the help of State Government for meeting the needs for Mumbai. See for report
Committee of secretaries report
     
Now for the past one year, 100 MW is being sold in the open market outside Mumbai to make huge profits for Tata Power’s shareholders.
   
Summarising the first three actions of Tata Power
  • Blocked all others from setting up power plants
  • Did not add even a single MW of power for 15 long years, between 1993 and 2008.
  • Took all Government approvals for its power plants on the pretext that the power was meant for Mumbai

But what is even more shocking is the fact that they also collected money from the consumers to fund their power plant!

 
 
  Mumbai consumers have paid a staggering Rs 534 crores as equity capital to Tata Power
 
Here are two simple evidences:
   
 
Government’s letter to Tata Power (Erstwhile TEC) allowing them to collect money from Mumbai consumers in the form of additional 3 paise per unit as special appropriation. See Tata Power’s balance sheet and Govt’s letter to them GOM's letter to TPC(Erstwhile TEC)
GOM's letter to TPC
 
Tata Power’s balance sheet showing the Rs 534 crore collected from Mumbai customers as the special appropriation towards project cost See Tata Power’s balance sheet and Govt’s letter to them
TPC balance Sheet
     
After taking all approvals and consumers money, now Tata Power wants to sell this power outside Mumbai. Their claim: RInfra did’nt sign a PPA with them.
 
 
  Contrary to Tata Power’s claims, it was Tata Power who backtracked from their commitment to sign the PPA with RInfra.
   
 
  13th Apr 2009: RInfra proposed to TPC to sign PPA for 500MW without any preconditions. See the letters
RInfra letter to TPC
 
  28th Apr 2009: Tata Power welcomed RInfra proposal. See the letters
TPC letter to RInfra
 
  25th June: Tata Power backtracked from signing the PPA. See the letters
TPC & RInfra's letter exchanges
 
 
  Still want to see more evidence of Tata Power’s greed to make obscene profits at consumers cost?
   
 
  25th March, 2010: From the 500 MW that they threaten to withdraw, Tata Power offered 200 MW back to suburban Mumbai consumers but at a whopping 55% higher price (Rs 5.90 per unit as against the regulated price of Rs 3.8 per unit).In a letter to Government of Maharashtra! See the letter.
TPC's letter to the GoM
(see the highlighted section)
 
  7th May,2010: Even the report of the committee of Secretaries points out Tata Power’s monopolistic actions of diverting Mumbai’s power outside Mumbai at the cost of low end consumers.
TPC letter to RInfra
(see the highlighted section)
 
 
Tata Power created a position of dominance and monopoly by
- Taking all approvals from the Government on the pretext that the power was meant for Mumbai
- Taking Mumbai consumers’ money to build its power plants
- Committing to meet Mumbai's power demand on various occasions
- Not allowing RInfra to set up power plants for Mumbai
- Refusing to sign PPA with RInfra
 
 
And now . . .
 
Tata Power is using this dominant position to make super-normal profits
- Diverting 100 MW outside Mumbai for the last one year to make extra profits to the tune of Rs 300 crore
- Withdrawing the regulated priced 500 MW from suburban Mumbai and offering to supply only 200 MW
- Also, demanding a massive 55% price increase from you for this 200 MW
   
If Tata Power has its way, it will end up making a staggering Rs 1200 crore of extra profit, by diverting power that is produced in Mumbai, produced for Mumbai and even funded by Mumbai consumers.
 
Who will pay for it?
Unfortunately, YOU - the consumer. By way of a steep increase in your electricity bill
 
 
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