Tata Electric Company Projects

The Bhivpuri Power Project

Source: Times of India, Bombay, Dec 19, 1995.

This 450 MW power project is under consideration by the Maharashtra State Electricity Board (MSEB). The TEC has special status as a licencee for power supply to Bombay. If the project is sanctioned, then the TEC will supply most of the city's power requirements. To prevent this, the MSEB has allowed the BSES and even the BEST to generate power for the city.

Because of the special status of the TEC, this power project is not being considered under the scheme for Independent Power Producers (IPP). If commissioned, the MSEB may lose revenue of about Rs. 550 crores (5.5 billion) every year from the power the TEC presently buys from MSEB, to supply to the BSES and BEST.

The TEC claims that they buy power from the MSEB at Rs. 4.60 per KWh and sell to the BSES and BEST at Rs. 2.25 per KWh. This is said to be possible only because of the efficiency of the Trombay thermal power plant and the older hydro-electric plants, all of which are claimed to run at a load factor of 90%. The national average load factor, on the other hand, is said to be 60%.