MMRDA Shifts Power Supplier for Mono, Metro Services Amid Tariff Surge

In a strategic maneuver to mitigate escalating operational costs, the Mumbai Metropolitan Region Development Authority (MMRDA) has opted to transition from Tata Power to a more economical power supplier for its Monorail and Metro corridors 2A and 7.

The decision comes in response to the substantial hike in Tata Power’s tariffs, effective from April 1. Under the current tariff schedule for 2023-24, the rate stands at ₹4.92 per unit for the monorail and metro corridors. However, the proposed tariff for 2024-25 would escalate to ₹7.37 per unit, alongside an increase in fixed charges from ₹375 to ₹400. This considerable surge in costs prompted MMRDA to seek alternative, cost-effective options to sustain its transportation operations efficiently. Senior officials from MMRDA confirmed that instructions have been issued to begin the process of switching over to a different power supplier, most likely to Adani Electricity, which charges ₹6.15 per unit. The process for switching the power distributor for both modes of public transit is underway, they added.

Corridors 2A and 7, extending along a 20-kilometre stretch from Andheri (W) to Dahisar-Gundavali in the western suburbs, witness a substantial daily electricity consumption ranging from 12 to 15 megawatts. This power caters to traction and station premises, facilitating over 250 services daily, serving a commuter base of approximately 2 to 2.50 lakh passengers. Similarly, the Chembur-Wadala-Jacob Circle monorail route, spanning 20 kilometres, consumes 2 to 3 megawatts daily, serving around 15,000 passengers. Notably, both the Monorail and Metro services incurred significant losses amounting to ₹529 crore and ₹223 crore, respectively, in the previous fiscal year. The decision to switch power suppliers aligns with MMRDA’s efforts to streamline operational expenses and enhance financial sustainability.

However, Tata Power officials have stated that MMRDA has yet to apply for a power supply switch, highlighting minimal differences in tariffs between Tata Power and Adani Electricity. Tata Power’s recent tariff hike, aimed at recovering arrears amounting to ₹1,374.08 crore, has primarily impacted residential consumers, constituting nearly 90% of its customer base. Despite regulatory approvals, Tata Power underscores its commitment to providing competitive and reliable services. The transition to a more cost-effective power supplier reflects MMRDA’s proactive approach to optimise resources and ensure efficient public transportation services in Mumbai’s bustling metropolitan landscape.