RInfra to recover past arrears worth Rs.5,550 crore

Mumbai, Aug 23 (IANS) Integrated infrastructure and power company Reliance Infrastructure (RInfra) Friday said the Maharashtra Electricity Regulatory Commission (MERC) has allowed it to recover arrears and carrying costs aggregating to Rs.5,550 crore over the next six years.

According to the company, the MERC order dated Aug 22, 2013, allows it to recover past arrears, along with 14.5 percent per annum of carrying cost which comes to about Rs.925 crore per year, aggregating to Rs.5,550 crore over the next six years.

"MERC has also allowed RInfra to recover revised cross subsidy surcharge (CSS) of Rs.819 crore for 2013-14, Rs.896 crore for 2014-15 and Rs.590 crore for 2015-16," the company said in a statement.

Further, according to the MERC order, revised tariff, the arrears recovery and revised CSS will become effective from Sep 1, 2013.

The statement added that the tariffs are expected to reduce by 12 percent and 11 percent in the next two financial years due to the company's efficient and low power procurement costs.

Currently, RInfra is the largest power distribution licensee in Mumbai. It has a 25- year licence to distribute electricity in over 400 sq km of suburbs and surrounding areas of Mumbai which caters to around 29 lakh consumers.

RInfra is also a leading infrastructure company which develops projects in several high growth areas in the Infrastructure sector like, roads, metro rail, and cement.


Get stories like this on the Yahoo app and discover more every day.
Download it now.