Reliance Infrastructure gets MERC nod to recover Rs 2,300 crore

The distribution business of Reliance Infrastructure received permission from The Maharashtra Electricity Regulatory Commission (MERC) to recover as much as Rs 2,300 crore from its customers. This recovery could happen over the period of five-six years.

In the process of review by MERC between 2004-05 to 2010-11, the amount got accumulated due to staying of tariff order and adjustment of various costs. The regulator will decide the recovery mechanism.  Regulators are in the midst of coming out with a regulation in this regard, and they have already conducted extensive public hearings on the same, though increase in rates could be one of the methods.

Recently, Reliance Infrastructure was looking to divest its stake and was in talks with investors and funds to sell stake in its roads, metro lines, and transmission businesses. The company which started out as a power distributor in India's financial capital, had looked to transform itself into a complete infrastructure player as Asia's third-largest economy revamps its infrastructure.