MERC, in its order, has allowed Tata Power Company (TPC) to supply electricity in Mumbai city and parts of suburban areas Bandra to Dahisar in the Western suburbs and Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs for 25 years.
It has also been granted a licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.
"Based on all materials placed, and suggestions and objections received, the Commission is of the view that it is in the public interest to grant licence to TPC to distribute electricity in the proposed area of supply," MERC said in the order.
The Commission had invited tenders from interested parties to supply electricity in the proposed areas as TPC's licence was expiring on Friday.
The new licence will come into effect on Saturday, the order said.
"The commission grants distribution licence to
TPC to supply electricity in the proposed area for 25 years from August 16," the order said.
MERC has also asked Tata Power to submit a fresh rollout plan, for supplying electricity, within six weeks. Currently, BEST is supplying electricity in the city along with Tata.
"With this order, consumers of BEST can shift to Tata Power's network," an industry expert said.
Tata Power has a consumer base of 5 lakh in Mumbai, of which nearly 65% are those consuming under 300 units per month.