Tata Power tells discoms of Gujarat, Haryana, Punjab, Rajasthan & Maharashtra that supply may be stopped from March if tariff not hiked.

Tata Power, which runs one of the country’s largest power plants at Mundra in Gujarat, has threatened to stop supply from the plant to five states beginning March if they don’t agree to tariff increases. The Mumbai-based company, which may incur a loss of Rs. 1,000 crore from this one unit alone this year, has issued notices over the past few weeks to distribution companies owned by the state governments of Gujarat, Haryana, Rajasthan, Punjab and Maharashtra on the possible disruption.

People close to the development said that Tata Power has made it clear that it will not be able to run the power plant unless the pass-through of additional fuel cost to consumers is allowed.

“We have written to them (discoms) that we may have to consider shutting down if there is no positive response, we have not said we will shut down,” a Tata Power spokesperson.