Lights On: Gujarat Approves Tata Power’s Mundra Plant Revival

The Gujarat government has approved a supplementary power purchase agreement (PPA) with Tata Power for its 4 GW Mundra power plant, paving the way for the facility to resume operations after remaining idle for nearly nine months due to elevated imported coal costs.

According to the company, the state cabinet has cleared the revised agreement and issued a government order. Following necessary regulatory approvals, the PPA will be formally signed between Tata Power and Gujarat Urja Vikas Nigam Limited.

The updated agreement includes provisions for coal cost pass-through, addressing challenges that emerged after the withdrawal of emergency compensation for rising fuel prices. The move is expected to stabilise operations at one of India’s largest coal-based power plants and ensure a more reliable power supply in the region.

News by Rahul Yelligetti.