Instigating ShivSena-Power distribution issue-20090611-211917

  • Instigating ShivSena-Power distribution issue-20090611-211917 

“You’re going to have the Shiv Sena after you next.”

“That’s what’s going to happen, because they went after them, so you’re going to have the same Shiv Sainiks coming after you saying you can’t do that.” …

“I’ll see how I can use the other group to get a message across to Uddhav, in order to say ke go after them instead.”…

“I’ll tell them to tell Uddhav to go after them.”

Manohar has transcribed this tape in a comment below. Please crossheck.

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1 Response to “Instigating ShivSena-Power distribution issue-20090611-211917”


  1. 1 Manohar November 27, 2010 at 8:25 pm

    NI stands for Nira Radia

    SH stands for Shalini.

    trin,trin…..

    SH Hello.

    NI Sorry Shalini,network issue.Haha..

    SH No problem.Haha..

    NI Yeah.You are saying so yesterday, you are going to tell them that..you will be able to tell basically.. but address the north mumbaikar’s more in specific this..(unclear from 0.18 to 0.24)come to you
    directly

    SH Yes,yes…Right,right.

    NI That’s the sort of you know …they expect..you know for them to do that, otherwise they are going to
    send people to picket outside Bombay house and..

    SH Haan,Haan. That might still happen Nira. You are absolutely on the ball, that might still happen
    you know which could be people who they pay to do it, you know.

    NI Ya, of course ya,ya.

    SH Haan, hmmm..

    NI But I think what will be then interesting is to have people say in North Mumbai that “That’s great,we are going to have TATA’s giving us power, we’ll give us power in Bombay for hundred years ago who were the first…bring that. May be we have to set it up

    SH hmmm,hmmm..

    NI may be we get some consumers from North Mumbai to make that statement saying this is really great.

    SH OK.OK.

    NI Ya, so I have told this to Rakesh, I have given him some inputs and all that.I think….

    SH Wonderful.Hmmm,Hmmm..

    NI So monday we would be ah..leaving

    SH Monday we are targeting.Ya, hmm. We would really appreciate if you have time for you to look at a
    letter also, which would go to them.

    NI Nah,nah,it’s coming. Rakesh said he is sending me a draft.

    SH That draft ya, I will send Rakesh a draft but it’s not finalised as yet.

    NI OK.

    SH Little thing with the lawyer you know because some of the language is a little harsh.

    NI Hmmm,Hmm..

    SH So we were wondering if lawyers will temper it. So in case if..that’s likely to happen tomorrow. So I
    will send to Rakesh and to probably you and Vishal the final letter which goes on Monday.

    NI Great.Great. (1:41 – 1:43 not clear). Rakesh sends me the letters, will be very happy to look at those. Very fine…

    SH So I hope we got…hahah

    NI Let’s go forward,let’s go forward.

    SH Ya, I am looking at this and note that to prove that your push is helping, haha.

    NI There is one more thing Shalini. What is the bottom-line or the top-line, do we have any idea ? Because they are obviously going to loose out on top-line.

    SH Hmmm,Hmm…

    NI I don’t know what’s the bottom-line position is going out to be, as it is I think….What I would like
    to do, as I understand they are going to have ah.., obviously they are going to the grid and buy
    500 Megawatts from there

    SH Hmmm,Hmm..

    NI Or they are going to get it from X,Y,Z.

    SH OK.

    NI Now whatever is still an uncertainty. But our people in TATA power would be able to tell us what are the possibilities of them getting that.

    SH Hmmm,hmm..

    NI One is, it will have an impact on the stock price.

    SH Haan…

    NI Second is going to be the fact that they will have a challenge as far as getting power is concerned.

    SH Ya.

    NI It is already you know (2:40-2:42 not clear)

    SH Ya.

    NI And therefore, is going to have an impact on top-line definitely and bottom-line of course.

    SH Yes,Yes.

    NI Then I would , then like to push that sort of a story to Manoj.

    SH Hmmm,Hmm..I have an interesting, I have an interesting…actually it will impact more on the bottom-line and of course there won’t be..top-line will also be effected. Because you know here, what will happen is the 500 Megawatts which we have ok ?

    NI Hmmm,Hmmm…

    SH It will go, actually for the, the short while that is available for us to merchant.

    NI Haan,Haan…

    SH Merchant also, Ok. There is a bidding.

    NI Haan,Haan..

    SH Where we will tell REL, that you can buy the power but you’ll have to buy it via our trading, which
    means you will pay a higher price. It’s called cap-one bidding.

    NI Right,right.

    SH So it will directly impact their bottom-line.

    NI Haan,Haan…

    SH So bottom-line impact is very clear even if they have to buy this power if it is available. But they
    will have to buy it at a higher price and not at the regulated price. Because they don’t have a CPA
    and they have been playing difficult.hmm…the second part is,

    NI Sorry…

    SH haan,haan. The second part is, so definitely the impact is more of bottom-line if they buy this power. If they go out they will get power even at a higher price. Which is eleven,eight,nine rupees. Right now
    this is five, at a stage one bidding they might get it at seven thirty or something,
    seven..seven thirty. That is our estimation.

    NI Haan..

    SH And if they go out in the market then they will have to probably buy it on day-to-day basis, in certain cases, or they might have to..ah, so it’s,it’s lots of work basically for them.

    NI That’s a great thing because, already I know the impact that’s going to have as far as the financial
    institutions towards that

    SH Yeah,yeah…

    NI (4:20-4:23 not clear) .. the messaging going out to them, where we can use Manoj..

    SH Hmmm,Hmm…

    NI and nucomm to put those positionings out..

    SH Yes,yes and we can instigate BEST at some point in time, I am not saying now, to say that.”Look,we are not being able,to make their arrangement as a distribution company which is actually their you know..
    basically their responsibility, and we as we can tell MERC (Maharashtra Electricity Regulatory
    Commission)to cancel their licences because they are not able to service consumers, you know , that
    kind of thing BEST has been rising.

    NI Hmmm,Hmmm….(4:51 to 4:55 : not clear) kind of thing Rakesh needs to push.

    SH Haan.

    NI And push that to the journalists and ask them to ask the BEST what will happen and provided they say we will have to cancel their licences.

    SH Yes and I think that will be very interesting. That is what, I don’t know how much that is possible…

    NI Hmmmm,Hmm..

    SH But, but I think, that is the time to really rise this issue either through BEST or through consumer
    groups..

    NI Hmmm

    SH On basically saying that if they can’t secure power then please let MERC re-look at their licences.

    NI Hmm, Hmm. But Shalini, if they still have to go out and get power from outside, if they are going to do , all they are going to have to do bid through the merchant’s..you know..your rule you are suggesting.

    SH Hmmm,hmm..

    NI They are still going to pass the consumer tariff on to the consumer. They are going to say look now you are going to have to pay eleven rupees now, that’s because that’s what I am going to have to pay from
    TATA, they are getting greedy and really want to earn more profits. So that may still be a googly that will hurt you , ah..

    SH Hmm,hmm…Oh yes, it will. That’s absolutely right. They will blame us.

    NI They will keep on reinforcing that message that, “No, well, you have a choice, we have a, we also have a licence, so we will any case provide you directly…

    SH Haan,Haan..

    NI “….Whatever is our price we will provide you with that.” You know the consumer will then feel and
    then we have to go direct, you can go directly with us, we have a generator, we are also the
    distributor.

    SH Haan,Hmm..

    NI So you any case cut out the middleman,so as to say.” Is it those sort of statements in the market?
    At least,

    SH The only problem, there is only one problem Nira, right now. Our network, ok, ah..ah, is an issue
    right now. OK ?

    NI Hmm,Hmm

    SH In the sense that we, we…have some twenty-six thousand customers over the last one year ever since
    the licences, we got the licences in July. We have added about three thousand customers..two-thousand
    six hundred. We have serious network expansion issues, therefore you know, we are not hundred percent
    geared up to say, “OK, if one of the Reliance consumers gets up tomorrow and says that I am at X
    location, it is not actually necessary that we have a network to service him.

    NI Hmmm,hmm..

    SH So we have to see. So that is the caveat, and I want to just tell you our limitations. That it’s not
    that the network is mature enough to service anybody and everybody. That’s one of the reasons why we
    are in the retail ah.. and we have applied already for the cap-ex etc. And that is going to get
    cleared in the next few days. That model is going to come…the three years expansion plan. But
    that’s one thing where you know…the regulator has to step in to allow REL’s ah..you know the
    access to be used, the transmission capacity and the distribution capacity to be used, to be used to
    service that customer.

    NI Haan,hmm..

    SH And we could be the last mile connection.That kind of a thing. That’s especially to the game..You know them much more than anyone of us in the…, how difficult they can be on infrastructure sharing also
    nah..

    NI Hmmm,hmm..Ok so you are going to have to use them is it ?

    SH No, not necessarily, ah..see we will be very lucky if your consumers will get our consumers who are
    near our current receiving stations..

    NI Hmmm,hmmm..

    SH Whom we could just pull the wire and help. Ok?

    NI Hmm,hmm..

    SH If it is, if it is, too far away from the existing receiving stations..

    NI Hmmm,hmm..

    SH Then it actually means, network actually means you have to set up these sub-stations and receiving
    stations to be able to service. Which we as a generator are..have to expand, much more than anybody
    else.

    NI Hmmm,hmm..

    SH So,so..that part is..is..

    NI Certainly but, it’s no harm in saying that we are going to be retailing in North Bombay..

    SH Yes,yes. There is no harm at all, no, no not at all. In fact we have very clearly said that we are going
    into growth areas. We said we are not even targeting switch-overs right now because..ah, ah. Because
    Bombay demand is growing substantially and, and we are looking at growth areas.

    NI Hmmm, haan,haan..

    SH And, and you know around our sub-stations areas which happen to be all north Bombay actually.

    NI Great, great. I am glad, I am glad we are doing ..regressive against. You know financial if you have
    any info on the mode of financials that are going to get..I am sure your people have done some..

    SH Hmmm,haan..they have.

    NI That’ll be very useful and I can use the..and you know and tell Rakesh to plant those stories along
    and give some inputs

    SH Sure,sure..

    NI That will be useful, if you can get that as well.

    SH Sure.

    NI Thanks so much and all the best.

    SH Thank you Nira, we need all the good wishes, I think. One of the swift fights that we are going to be
    having..

    NI Yeah, ah…certainly.

    SH Section 11 is the only thing which worries us in all of these. Nira, one thing that we want to just
    tell you is ..which is not on your radar is that the ah, state elections are scheduled in september –
    october, ok.

    NI Yeah, yeah…

    SH If they ah, because, create too much of ruckus, REL, then because of the consumer thing and because
    of the state elections etc..

    NI Hmm, Hmm..

    SH State government can be, can be a face.

    NI Ya but, court’s attack right and they will enforce that.., you are going to have grey areas, oh
    isn’t it?

    SH Ya, it’s a grey area. It’s a grey area, we have to take our chances you know, that’s why we have to
    take our chances. Now or never.

    NI Oh, you are going to have the shiv sena after you next.

    SH Hahaha…

    NI That’s what’s going to happen, because they went after them..

    SH Hmmm,Hmm…

    NI So you are going to have the same shivsainiks coming after you saying you can’t do that. you know ?

    SH Haan, can happen.

    NI They will do, you know, create up a ruckus.

    SH Hmmm, only,only if we , if they feel we are responsible. Otherwise they can still go after REL.

    NI I don’t think so, they will turn the table.

    SH No?

    NI No, No, I don’t think so. Don’t, don’t. Because by now they would have sorted that out. Remember that
    Udhav and them have already take funding from both groups you know.

    SH Hmm,hmm..suddenly they are very quiet also actually.

    NI They would have handled that and therefore that’s the first group they are going to turn on your head.

    SH Hmmm,Hmm…

    NI Therefore my suggestion is that..you should use Krishnakumar to talk to Udhav.

    SH Accha, ok.Hmmm,Hmm..

    NI Simultaneously you know we should make sure that we don’t get..if we feel, or if even get a sense that
    they are going to..then KK should pick up the phone and tell Udhav that you don’t go out with TATA’s
    on this one.

    SH OK,ok…

    NI KK has a good rapport with him….

    SH Ok,ok…

    NI Otherwise, I will see how I can use the other group to get the message across, in order to say that
    go after them instead.

    SH Hahaha..OK, Nira,right.

    NI We will both work on this together, so that we’ll just..

    SH Sure,sure…

    NI If we can brief KK and I will separately tell them to tell Udhav to go after them you know.

    SH OK.

    NI That might be the better way to do it. I don’t think the congress and others are going to do too much.
    You never know, the State government may take a call and may say, “No” , you know this is..

    SH Hmm,Hmm…and power is anyway a quiet a burning issue for Maharashtra govt nah always.

    NI Correct, Correct…

    SH So….

    NI They won’t see that as a threat here..

    SH Hmmm,Hmm..

    NI Well, ah got to be careful of the MNS and all that-ah, they are the one’s that will use this as a
    opportunity of big industrialists trying to…you know, woo a man and all that, that could be..
    But let us see, lets..

    SH I guess we got to take our chances so..

    NI Hoo?

    SH I said we have to take our chances..


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