MUMBAI - private sector utility Tata power co. said Friday it will stop current reliance infrastructure Ltd. and redirect the 200 megawatt supply it provided to the rivals to own consumers now.
The two companies were involved in a dispute over the power supply in distribution city Mumbai.
Analysts say Tata power required peak demand for electricity of more than 750 MW in Mumbai and this is expected to continue to grow. The company is the same as MW of its own generation units and the rest of the free market demand current bought about 650.
The diversion of 200 MW will now enable Tata power demand on its own, what cheaper electricity and new customers to comply with, say analysts.
Tata power added about 75,000 conversion allows customers to retail customers at the end of December 2010, since the State regulator by reliance infrastructure on Tata power in October 2009, the company said in a presentation earlier in this year.
Reliance infrastructure said it is "reasonable accommodation" for the requirements of its customers. In a statement said the company "continue without interruption and quality to get power supply its consumers."
Write to Eric Yep at eric.yep@dowjones.com
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