Govt Extends Special Framework for Tata Power’s Mundra Facility

The Ministry of Power has extended the special operating framework for Tata Power’s 4,000-MW Mundra thermal power plant until September 30, allowing the imported coal-based facility to continue supplying electricity under government-mandated directions.

Tata Power said in a regulatory filing that the extension applies to the existing framework that was due to expire on June 30, 2026. The decision reflects the government's continued focus on ensuring reliable power supply and supporting grid stability amid rising electricity consumption.

The Mundra plant, operated by Tata Power subsidiary Coastal Gujarat Power Ltd (CGPL), supplies electricity to Gujarat, Maharashtra, Rajasthan, Haryana, and Punjab.

Given its dependence on imported coal, the plant has been affected by volatility in global fuel prices. To improve operational viability, CGPL has signed supplementary power purchase agreements with procurers, including Gujarat Urja Vikas Nigam Ltd (GUVNL), under a revised commercial structure designed to better accommodate higher fuel costs.

News by Rahul Yelligetti.