Tata Power Company and Reliance Energy (REL) are at loggerheads once again. At stake is a 1,300 acre site on the Maharashtra coast where both companies want to build a power plant.

While REL had approached the state revenue department to acquire land for its 2x2,000 Mw imported coal-based plant, the Tatas approached the state industrial development corporation, MIDC, to acquire the land for their 1,600 Mw plant, under the MIDC Act.

While MIDC has notified the land acquisition and is planning a public hearing, the state revenue department is yet to notify the land requested by REL.

However, Reliance's proposal was approved earlier by the state government, which now finds itself in the unenviable position of having to sort out who gets the land.

State Power Secretary Jayant Kawle said, "We are bringing both the parties to the negotiating table and are hopeful of sorting out the issue."

This is the second time in recent months that both the companies are slugging it out. Last year, REL accused Tata Power of poaching its bulk customers, while Tata Power claimed that nothing in its agreement with the state government stopped it from supplying power to bulk customers. The issue is currently pending before the Supreme Court, after the Electricity Appellate Tribunal ruled in favour of Reliance Energy.

Tata Power's original plan was to set up the plant at Vale-Bagad village in the same district. The company, however, decided to move to the new site in June last year.

A Tata Power spokesperson maintained that there was no dispute. She also denied that the land, which it wants to acquire, overlaps with the land identified by REL. She added the company's earlier plan for Vale-Bagad was still on.

State industry department sources claimed that they were not aware of REL's proposal or this overlap would have been avoided.

REL executives refused to comment on the issue. The state government has a representative on the Tata Power board, usually the state power secretary.