No automatic Mumbai licence extension for R-Infra

The application of Anil Ambani Group company Reliance Infrastructure (R-Infra) for an extension in its existing power distribution licence to the suburbs of this metropolis has been rejected. It has, instead, been told to join the competitive process for a new one, with four other bidders. The licence is to expire on August 15 and the company had applied to the Maharashtra Electricity Regulatory Commission (MERC).
R-Infra had approached MERC last November, to amend the expiry date; it wanted a 25-year extension. MERC has invited applications of Expression of Interest for power distribution in the Mumbai suburbs. Four bidders — India Bulls, MahaVitaran, Torrent and Lanco — have applied. In view of MERC’s order, R-Infra has been asked to file a fresh application, too, for a distribution licence.