In what can be considered a landmark judgment, the Supreme Court put to one side the petition filed by Reliance Infrastructure, and approved the two Power Purchase Agreements (PPAs) signed by Tata Power Company Limited with Brihanmumbai Electricity Supply and Transport (BEST), as well as the Tata Power distribution division.

While Tata Power’s PPA with BEST is for 800 MW, its PPA with distribution arm for 477 MW, the PPA between R-Infra and Tata Power for 500 MW is yet to be signed.

Though the PPAs signed had already met with a due approval from the Maharashtra Electricity Regulatory Commission (MERC), R-Infa had challenged them, and filed a petition against the power allocation in the SC. However, the May 6, 2009 approval by the SC has brought to an end the much-prolonged lawsuit.

Making a mention of the momentous approval to the PPAs by the SC, Tata Power said in its statement that the apex court, referring to Section 23 of the Electricity Act of 2003, also held that the Act “does not give any jurisdiction to MERC to allocate any power to a non-contracting discom.”